Stable fuel prices help to reduce inflation

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The latest drop in the UK inflation rate to 1.6% is good news for the Borders says MP Michael Moore.

Confident that the region can look forward to a number of benefits, Mr Moore said: “The fact that the inflation rate has dropped to a record low since the financial crisis is excellent news for families and businesses across the Borders.

“The continued stability of fuel prices has contributed to the falling inflation rate and is good news for drivers in rural areas like ours.

“Because the inflation rate has dropped, the gap between average wage growth and the rise in prices has continued to narrow. This means hard working people will be able to buy more with their wages.

“The decrease in the inflation rate is evidence that the economy is finally starting to turn around thanks to the Coalition Government’s strategy.

“However, there is a still a lot of work to be done to ensure a fair and sustainable recovery.”

This is the third consecutive month inflation has been below the Bank of England’s 2% target rate, and the lowest rate since October 2009. The largest contribution to the fall in the rate is reduced petrol prices.