After a series of bruising setbacks, the Prime Minister can finally point to some positive news: inflation is falling again. The drop, from four per cent to 3.4 per cent, not only beat City expectations but means that over the past 12 months inflation has fallen at the fastest pace since 1978, according to the Resolution Foundation.
The reason for the decline is further cause for celebration. Food inflation has dipped to five per cent, down from 6.5 per cent — the 11th successive monthly fall. And while these figures are unlikely to precipitate an interest rate cut this week, it signals that relief for households could start this summer.
