Surprise as inflation rate falls in UK

Figures released today have revelaed that the rate of inflation in the UK unexpectedly fell to a two-and-a-half-year low last month as declining oil prices started to filter through to the petrol pumps.

The Consumer Price Index (CPI) rate of inflation dropped to 2.8% in May, from 3% in April, the Office for National Statistics (ONS) said, the lowest level since November 2009. City analysts expected the rate to remain unchanged.