Help For Households: Inflation Falling

Tuesday, 14th February, 2012

The headline rate of inflation has dropped to its lowest level since November 2010, in a sign that the pressure on cash-strapped households has continued to ease. The consumer prices index (CPI) rate fell to 3.6% on an annual basis in January, from 4.2% in December. The performance mainly reflects last year’s increase in VAT being stripped out of the calculations. The figure also remains in line with the Bank of England’s forecast that inflation will average just over 3.4% in the first three months of 2012.