P.M. BRIEFING : British Inflation Eased in Jan.
British inflation eased to 9% in January from December’s 9.3%, the government said today, expressing optimism that prices will continue to fall as the economy copes with recession.
The nation is struggling with a recession deepened by high interest rates imposed by the government to keep prices from rising.
Inflation, measured by the retail price index, has declined from a peak of 10.9% last fall. However, the average rate of inflation in the 24 leading industrial nations is 5.2% annually.
Cheaper gasoline and price cuts in New Year store sales helped to bring down British inflation in January.
The government, after a preview of the figures, shaved base interest rates to 13.5% from 14% Wednesday and hinted at further cuts if inflation continues to abate.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
