Inflation falls

Inflation figures released by the Office of National Statistics show that Consumer Price Inflation fell from 3% to 2.8% and Retail Price Inflation fell from 3.5% to 3.1%.

Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “The fall in Consumer Price Inflation will be welcomed by businesses and consumers, and it is the first time the measure has dropped below the Bank of England’s 3% target since December 2009.

“We are seeing inflationary pressures fall in supply chains as a result of weaker global demand influences on commodity and oil prices, so we expect further easing of inflation in the next few months.

"However consumer confidence on the demand side remains weak and all eyes will be looking towards retail sales figures, which will be released later this week, for signs that lower inflation is encouraging households to loosen their belts.”