Price index ‘to fall 3.9%’

The Consumer Price Index (CPI) is expected decline 3.9% and the Harmonised Index of Consumer Prices (HICP) could fall 1.4% this year, according to a forecast by Davy Research.

It added that prices would decline hugely in 2009 as interest rates tumbled further and the recession bit. The CPI could drop by 3.9% and the HICP by 1.4%.