Budget 09: Inflation target to remain at 2.0%
CPI to fall to 1% by end of year
Chancellor Alistair Darling forecast in his Budget that Consumer Prices Index
(CPI) measure of inflation will fall to 1% by the end of 2009 and that the
retail prices index would return to zero next year. He stressed that the
inflation target for the Bank of England’s Monetary Policy Committee would
remain at 2.0%.
March RPI fell to -0.4% in March from zero in February and was the first time
that this measure of inflation had been negative since 1960. The CPI rate fell
to 2.9% in March from 3.2% in February.