The UK Consumer Prices Index measure of uk inflation fell to 3% in April – its lowest since February 2010 owing to a slowdown in transport price rises and the timing of Easter, the Office for National Statistics reported.
The Retail Prices Index measure of inflation which includes mortgage repayments fell to 3.5% from 3.6% in March.
Sir Mervyn King, governor of the Bank of England, said CPI inflation would remain abouve the 2% target for the next year of so owing to a “storm” in the eurozone creating a threat to UK recovery.
This is the first time in this Parliament that Sir Mervyn has not had to write an open letter to Chancellor of the Exchequer, George Osborne to explain why the 2% target was missed.