Inflation moderates, but head and tail winds continue

Inflation, as measured by the CPI, fell to 2.5% last month, that's down from 2.6%. This is still above the target rate of 2%, but it means inflation is going in the right direction.

There are always competing forces on the inflation rate. Some prices are rising and pushing the index up, others are falling and putting downward pressure on inflation. (Known as headwinds and tailwinds since a speech by the Governor of the Bank of England.)

Presently it is believed that inflation will fall towards target, despite factors such as higher food prices, because of weak demand in the economy generally. It is always difficult to be exact.

The BBC cover the figures here.

Look at the economy tracker for the data and maybe look at the personal inflation calculator