What will Bank governor say to chancellor about inflation drop?
by Larry Elliott Economics editor from on (#53PGP)
Andrew Bailey is obliged to write to Rishi Sunak after fall to 0.8%. What might he say?
It is letter-writing time for Andrew Bailey. Whenever the UK's inflation rate deviates by more than one percentage point from its official 2% target the governor of the Bank of England has to provide an explanation to the chancellor of the exchequer.
In April, inflation fell from 1.5% to 0.8% - the lowest in almost four years and the biggest monthly drop for more than a decade. So what can we expect Bailey to put in his missive to Rishi Sunak?
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