SUPERMARKET price wars and the falling cost of petrol last month helped push inflation down further from its peak, official figures revealed.
The Consumer Prices Index (CPI) rate of inflation fell to 4.8% in November, the Office for National Statistics said, compared with 5% the previous month.
A Treasury spokesperson said: “Price inflation came down in November, and that is good news for family budgets.
“The Bank of England and other forecasters expect inflation to keep falling over the coming year, which will provide additional relief.”
Liverpool Chamber of Commerce chief executive Jack Stopforth said the fall will reinforce the case for more Quantitative Easing (QE) by the Bank of England.
He said: “The fall in inflation was as expected and will accelerate in the early months of 2012.
“The latest British Chambers of Commerce forecast predicts inflation will fall from an average of 4.5% in 2011, to 3.3% in 2012 and 2.0% in 2013. The fall in inflation strengthens the case for an increase in QE. The latest figure should reassure the Monetary Policy Committee that it is correct to persevere with expansionary measures.
“While an increase in QE is necessary, it is not on its own sufficient enough to support growth in the economy.
“The Government must supplement any additional QE with other measures including the rapid implementation of its credit easing plans.
“In addition, moves to reduce regulation, and cut business rate increases next year, which are currently pegged to last September’s peak inflation figure of 5.6%, would help businesses grow and create jobs.”
