Inflation ‘pushed down’ by cheaper mortgages

The low mortgage interest payments being enjoyed by some homeowners in recent months have helped to push inflation down, new figures have indicated.

Office for National Statistics data has revealed that during April, retail prices index inflation fell 1.2 per cent.

The body said that cheaper repayments on home loans were a downward pressure on the figure, noting that the interest rate reduction made by the Bank of England in March probably had an influence on this.

Meanwhile, consumer prices index inflation appeared to slow in the fourth month of 2009, falling from 2.9 per cent in March to 2.3 per cent in April.

The ONS explained that cheaper electricity and gas bills were a contributor to this trend.

Currently at 0.5 per cent, the Bank of England base rate was maintained earlier this month after a meeting of the Monetary Policy Committee, which uses inflation as a factor in its decisions.

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