UK inflation falls to seven-month low

UK CPI inflation has fallen to 2.4% in April, a larger-than-expected drop from the 2.8% figure recorded in March.

The fall in the headline inflation rate was the first fall since September last year. The Office for National Statistics said "by far the largest downward contribution" came from transport costs, particularly motor fuels and air fares. The core inflation rate, meanwhile, fell from 2.4% to 2% - the lowest level since November 2009. Capital Economics noted this may have "reflected the timing of Easter, which fell in March this year but in April 2012". "Inflation still looks set to climb again in the coming months as we reach the anniversary of a period of falling petrol prices and...