UK inflation is falling fast – that's good and bad news
by Larry Elliott from Economics | The Guardian on (#3JN5M)
Brexit vote-fuelled inflation is washing out of the system but interest rates may still rise as soon as May
Inflation is coming down more quickly than the Bank of England expected as the impact of the post-EU referendum fall in the value of sterling washes out of the system.
That was the good news from official data showing that the government's preferred measure of the annual increase in the cost of living dropped from 3% in January to 2.7% in February.
Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.
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