Sterling slips as UK inflation falls
15 May 2007
15.05.07
Sterling slips as UK inflation falls
The Office of National Statistics revealed this morning that consumer prices rose 0.3%m/m or 2.8%y/y in April. This was down from 3.1%y/y in March, a level which prompted the unprecedented act of the Bank of England having to write an explanatory letter to the Treasury.
The fall in inflation was largely attributed to a fall in gas and electricity bills as the major providers passed on lower global energy prices after last year’s oil spike.
The Retail Price Index (RPI) on which most pay deals are based, eased to 4.5%y/y as expected from a sixteen year high in March of 4.8%y/y.