Failure to grasp UK inflation drivers will continue to keep prices high

Energy prices have fallen and farming and manufacturing costs have eased, so why are food prices still accelerating?

Inflation is falling, but not as fast as everyone hoped. The Bank of England expected a bigger drop and so did the majority of City analysts.

A fall in the consumer prices index (CPI) to 8.7% in April from 10.1% in March put an end to the UK’s long period of double-digit price rises, but was not the 8.2% analysts forecast.