Inflation fell sharply to a four-and-a-half-year low in May as supermarket price wars pushed food and drink costs to their steepest decline in nearly a decade.

To send a link to this page to a friend, you must be logged in.

The Consumer Prices Index (CPI) measure of inflation dropped more heavily than expected to 1.5pc, from 1.8pc the month before, the Office for National Statistics (ONS) said.

CPI equalled the rate seen in October 2009. It was last lower, at 1.1pc, in September 2009.

The latest figures mark the sixth month in a row when the rate has been at or below the Bank of England’s 2pc target, the first time this has happened since 2009.

1 comment

The views expressed in the above comments do not necessarily reflect the views of this site

ADVERTISEMENT

ADVERTISEMENT

Most read business stories

File photo dated 27/02/13 of Tesco's Chief Executive Philip Clarke who is to step down in October. PRESS ASSOCIATION Photo. Issue date: Monday July 21, 2014. See PA story CITY Tesco. Photo credit should read: Rui Vieira/PA Wire

Update: ‘Outsider’ hope for troubled Tesco as Clarke departs

Tesco ditched beleaguered chief executive Philip Clarke today as it recruited an outsider from consumer goods giant Unilever to try to restore its fortunes.

Read full story »

loading...

ADVERTISEMENT

ADVERTISEMENT