Falling fuel and beer prices herald rare inflation drop
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Easing pain for motorists at the petrol pump and Chancellor George Osborne's Budget beer duty largesse should this week herald the first fall in inflation since last September.
The Bank of England's Consumer Prices Index inflation benchmark is expected to ease to 2.6 per cent in April from 2.8 per cent in March as a 2 per cent fall in fuel costs contrasts with price hikes a year earlier. The effect of March's 1p cut in beer duty should also feed through to figures on Tuesday, economists say.
April's better news on the inflation front may, however, be a temporary respite as student tuition fees and sterling's weakness conspire to push the cost of living higher once more.
In a television interview last night, the outgoing Bank Governor, Sir Mervyn said: "We are seeing a recovery. It's only a modest recovery, and we certainly can't be satisfied with it. We need to do more to use up the spare capacity, and to get back to a healthy, growing economy. But we are in a recovery period, I think."
Attention will also fall on whether Sir Mervyn changes his stance on calling for more money printing when minutes of the latest policy meeting are published this week. The economy grew more strongly than expected in the first three months of 2013 and the bank expects growth to accelerate to 0.5 per cent in the current quarter.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments