Indeed, in March, the inflation rate in the U.K. fell to its lowest level in four years, and sits below the Bank of England's target.
Read this excerpt from an April 15 Bloomberg story:
Britain's inflation rate fell to the lowest in 4 1/2 years in March as gasoline and clothing prices pushed it further below the Bank of England's target.
Consumer prices rose an annual 1.6 percent, compared with 1.7 percent in February, the Office for National Statistics said today in London. That's the lowest rate since October 2009 and matched the median of 38 estimates in a Bloomberg News survey. Core inflation also slowed to 1.6 percent.
Inflation has been below the BOE's 2 percent goal for the past three months, helping support Governor Mark Carney's case for keeping the benchmark interest rate at a record-low 0.5 percent. The slowdown in price growth is also easing the squeeze on consumers, and data tomorrow may show wage increases are beginning to outpace inflation.
The Bloomberg article goes into detail about retail prices and the London housing market.
Follow the link below to access the complete story.