Newspaper article The Journal (Newcastle, England)

Inflation Set to Be Lowest in Five Years

Newspaper article The Journal (Newcastle, England)

Inflation Set to Be Lowest in Five Years

Article excerpt

Byline: ECONOMY JOHN-PAUL FORD ROJAS business@ncjmedia.co.uk

INFLATION is set for a new five-year low when official figures are published today, showing the effect of the supermarket price war.

Falling petrol prices may also have helped drag the Consumer Prices Index (CPI) measure of inflation for September down from 1.5% to 1.4%.

The data from the Office for National Statistics (ONS) will show CPI below the Bank of England's 2% target for the ninth month in a row.

It is likely to leave the Bank's rate-setters free of any immediate pressure to raise interest rates amid the continuing recovery in the wider economy.

But it is unlikely to provide much comfort to hard-pressed households as labour market figures the following day are expected to show pay increases still lagging behind, little changed from the latest reading of 0.6%.

Rate setters are looking for wage figures to start improving before hiking the cost of borrowing. …

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