Inflation Down To 3%

CPI annual inflation fell 0.5% to 3% in April 2012. Easter had a significant effect on the data. The rate was last lower in December 2009 when it was 2.9%. The index stands at 122.9. The main causes of the decrease in the index were falls in prices in air transport, off-sales of alcohol, clothing and sea transport. Upward pressure came from the operation of personal transport equipment, restaurants and hotels, and rents. The RPI stands at 3.5% down from 3.6% in March. The CPI rose 0.6% between March and April 2012. Transport prices rose by 1.2% the largest contrubutor to which came from fuel costs which increased 2%. Petrol prices went up 3.2% to £1.42/l. Diesel prices rose 2.1% to £1.48/l. The increase in excise duties helped prices of alcohol and tobacco to go up by 2.9%, where tobacco prices increased by 5.1%. Prices of furniture, household equipment and maintenance fell by 1.2%, mainly due to downward prices in furniture and furnishings.