Inflation slows to 4.5%

19 November 2008

The Office for National Statistics today announced that annual inflation had slowed in October, following reductions in the prices of food and fuel.

The official CPI (Consumer Prices Index) fell from 5.2% in September to 4.5% this month – the biggest month-on-month fall in 16 years.

The news raises hopes that the Bank of England will make further base rate cuts, according to The Times.

A debt expert for Think Money commented that it can only be good news for people who are struggling financially. “High inflation figures from the past year or more represent the struggles many households have had to face,” she said. “Increasing numbers of households have fallen into debt as they struggled to make ends meet.

“4.5% is by no means low inflation – but it is hopefully the beginning of a downward trend that will see the pressure on UK households begin to ease, and fewer people falling into debt.”

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