DCSIMG

Supermarket prices plummet on back of inflation

Inflation dropped more heavily than expected to 1.5 per cent in May. Picture: Hemedia

Inflation dropped more heavily than expected to 1.5 per cent in May. Picture: Hemedia

INFLATION fell sharply to a four-and-a-half-year low in May as supermarket price wars pushed food and drink costs to their steepest decline in nearly a decade.

The Consumer Prices Index (CPI) measure of inflation dropped more heavily than expected to 1.5 per cent, from 1.8 per cent the month before, the Office for National Statistics (ONS) said.

CPI equalled the rate seen in October 2009. It was last lower, at 1.1 per cent, in September 2009.

The latest figures mark the sixth month in a row when the rate has been at or below the Bank of England’s 2 per cent target, the first time this has happened since 2009.

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