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Pound falls after surprise dip in inflation | |
(35 minutes later) | |
The pound has fallen after lower fuel prices led to a lower-than-expected inflation rate of 2.4% for April, according to the Office for National Statistics. | |
That was down from 2.8% in March. | |
Falling transport costs, including air fares, saw the consumer prices index (CPI) fall for the first time since September 2012. | |
But food prices continued to rise as cold weather hit crop production. | But food prices continued to rise as cold weather hit crop production. |
Inflation as measured by the retail prices index (RPI) fell to 2.9% in April, from 3.3% the month before. | Inflation as measured by the retail prices index (RPI) fell to 2.9% in April, from 3.3% the month before. |
The pound fell to $1.5184 from $1.5212 on the news, while the euro rose to 84.67p from 84.58p. | |
The fall came as traders interpreted the data as giving incoming governor of the Bank of England, Mark Carney, more leeway to stimulate economic growth. | |
Petrol and diesel prices fell by 2.1p and 3.9p a litre respectively between March and April, the ONS said. | |
The average price of petrol in the UK is currently £1.33 a litre or £1.38 for diesel. | The average price of petrol in the UK is currently £1.33 a litre or £1.38 for diesel. |
Food prices have risen 40% since 2007 and the recent extended period of cold weather has dented crop yields, putting further pressure on fruit and vegetable prices. | Food prices have risen 40% since 2007 and the recent extended period of cold weather has dented crop yields, putting further pressure on fruit and vegetable prices. |