Darling Receives Pre Budget Boost

In the run up to tomorrow's "eagerly anticipated" budget, Alistair Darling has received something of a boost from the inflation figures.

The Office for National Statistics (ONS) reports that inflation (consumer prices index - CPI) fell to 3% in February.

However, the retail prices index remained at 3.7%.

Optimistic forecasters believe that inflation will fall back to 2% by the end of the year.

Doubtless the wave of optimism that these figures has unleashed will be somewhat dampened after tomorrow's budget, which will bring home to roost a few truths about the real state of the economy.