Easing inflation hope for families
Hard-pressed households were offered fresh hope after official figures suggested inflation will continue to ease.The Office for National Statistics (ONS) revealed a 0.2% fall in the prices manufacturers charge between April and May, leading to the slowest annual rate of growth since November 2009.
And the prices manufacturers pay for goods rose just 0.1% in the year to May - its lowest rate since September 2009 - as oil costs fell.
The ONS's Producer Price Index, a closely watched indicator of inflation, provides further hope that consumer price index (CPI) inflation, which was at 3% in April, will continue to fall from its September peak of 5.2%.
This would help to ease the strain on households whose pay has failed to keep up with soaring prices.
The improving news on inflation comes as a Bank of England-backed survey showed that people last month expected inflation of 3.7% over the coming year, up from forecasts of 3.5% in the previous quarter.
Howard Archer, chief economist at IHS Global Insight, said: "The May producer price data are benign and boost hopes that consumer price inflation will head down appreciably further over the coming months."
The improving news on inflation comes as a Bank of England-backed survey showed that people last month expected inflation of 3.7% over the coming year, up from forecasts of 3.5% in the previous quarter.
Howard Archer, chief economist at IHS Global Insight, said: "The May producer price data are benign and boost hopes that consumer price inflation will head down appreciably further over the coming months."
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