Sharp fall in inflation

The Consumer Prices Index measure of inflation fell sharply in April from 3.5% to 3%.

Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “The fall in inflation will be welcomed by households, though the squeeze on incomes continues as inflation remains above typical wage increases and above the Bank’s 2% target.

“Looking ahead we can expect further falls if Sterling remains strong, though this will not help our exporters. There is the prospect of further quantitative easing by the Bank of England that will keep the pressure on inflation.

"We do not believe the Bank should engage in a further round of quantitative easing. The Bank should instead look for other means of driving growth and job creation, particularly in the regions, as they have felt the effects of inflation caused by the asset purchase programme without any of the benefits.”