Well, its about time isn’t it. Dear dear, not good news for the media and doom mongerers. Inflation has fallen – against all predicitons of it going up to 5% it actually fell to 4% in Feb.
Quite obviously nobody should be getting overly excited about this – it is still too high, but at least it does back up what the governor of the Bank of England has been saying for sometime now – that inflation will naturally fall after the effects of the VAT hike etc even themselves out – and that inflation will come down without the need for interest rate rises.
Thank goodness for someone with some fiscal sense – because if there is anyone out there who thinks the average householder has too much spare cash in their pockets at the moment and can afford for their mortage to start going up again – then think again.
Things are still tight – consumer confidence has not yet returned – though business confidence seems to be on the up. Lets see the average person happy to go out and spend again before we start putting pressure on their purses with a rate rise.
Long may they remain low.