Inflation Down to 2.3

LOWER petrol pricessent inflation down for the first time in more than a year, official figures showed today.

The Consumer Prices Index (CPI) fell to 2.3% last month from 2.5% in September as petrol pump prices fell back from their recent record highs.

The fall was slightly bigger than analysts had expected and further boosted the case for a cut in interest rates It was the first fall in CPI inflation since September last year and sent the measure back towards the Government’s 2% target.

The biggest downward effect came from fuel, as the average price of petrol fell by 1.3p a litre in October compared with a rise of 1.8p a year ago.

Financial services also had an impact, as increases in charges were not as steep as last year.

Increased supplies of some fresh vegetables also caused prices to fall this year