Inflation Falls More Than Expected

The Consumer Price Index has fallen by more than expected, from 5.2% to 4.5%.

The fall in inflation is being attributed to the reduction the price of fuel, food and utility bills.

This is the first fall since July 2007, and opens the way for the Bank of England to cut rates further and faster.

The question remains as to whether the Bank of England will act with courage, and cut rates aggressively in order to stave off the worst effects of the recession.