12 June 2007
12.06.07
UK Inflation fell to its weakest level in seven months as the lower cost of utilities continued to apply downward pressure to the figures.
Analysts had been looking for an annualised figure of 2.6% however The Office for National Statistics said that consumer prices rose 0.3% last month bringing the annual rate down to 2.5% which is the lowest reading since October 2006.
Retail Price Inflation (The measure that most pay settlements are based upon) also fell in line with market expectations to 4.3% which is the weakest since January 2007.
GBP gave up most of the overnight gains it had made against the USD and the EUR immediately afterwards.
(Research Desk - Ben Parkinson)