Could inflation fall to 1%?

Posted by admin on 16 December, 2008 under Business news | Be the First to Comment

Inflation has been reported to have fallen to 4.1% in November, continuing its fall after peaking at 5.2% and falling to 4.5% in October.

The main causes for the rise in inflation being the rise in commodity and food prices, with oil prices rising to record levels back in July 2008. However, most will have noticed the falls in pump prices of both petrol and diesel with petrol prices in the UK below 80 pence per litre and diesel now falling below £1 per litre.

The governor of the Bank of England has written to the Chancellor saying that the inflation rate could fall below 2% in 2009.