Base rate cut less likely as Inflation drops to 2%

The latest figures from the Office of National Statistics (ONS) show Consumer price index (Cpi) inflation - the government’s target measure – was brought down by air travel, fuels and lubricants. Seasonal increases in air fairs to foreign destinations were less than a year ago, while petrol and diesel prices fell for the third consecutive month, with the price of ultra low sulphur petrol down by around 3p a litre, compared with a fall of 2p a year ago. The average rate for Cpi inflation during 2005 was 2.1%, the highest since the start of the series in 1997. The average rate for 2004 w...