Inflation sees shock fall to 2.4%

UK inflation has dropped to its lowest level since November 2009 after a shock fall to 2.4%.

Consumer Price Index inflation fell 0.4% between May and June, official statistics showed today, well below analysts' expectations. They had expected CPI to remain unchanged at 2.8%. Inflation figures have largely been below consensus forecasts this year, a reversal of the pattern seen in 2011. Having been as high as 5.2% last September, CPI inflation came in at 2.8% last month, the lowest level since November 2009's 1.9% figure. Capital Economics now expects UK CPI inflation to stand at around 1% by December 2012, as energy price increases fall out of the index and core inflation ...