Inflation falls again

U.K. inflation slipped again as the CPI fell from an annual 1.9% to 1.7%. This is the least since October 2009 and well below the Bank of England’s 2% target. The downward pressure largely came from petrol prices, which fell 0.8 pence per litre compared with a rise of 4 pence a year earlier.

The figures support the BOE’s view to keep interest rates at a record low for some time to come, given the spare capacity in the economy and the extended squeeze on consumers’ purchasing power.