Inflation fell sharply last month as lower fuel prices and hefty pre-Christmas discounting on the high street brought some economic relief.
The drop – to 4.2% from 4.8% in November – is the biggest fall since April 2009 and supports Bank of England forecasts that inflation will tumble this year as a result of the faltering economic recovery. Inflation hit a three-year peak last September when it reached 5.2%.
This is good news for commercial and distribution businesses who will feel the benefit of lower inflation through a heightened interested in already sought after distribution premises.
2012 could be a good year for Coventry, not only has inflation dropped but also ,supermarket giant Costcutter has secured a five-year agreement with the University of Warwick to operate the campus’s 7,500 sq ft store, illustrating coventry as a investment and distribution hotspot.
Gerry Jones, the Institute of Directors, said: “What goes up must come down. We are finally seeing the sharp falls in inflation which we expect to continue in 2012. VAT effects falling out of the year-on-year index, lower utility prices and weakening demand should exert strong downward pressure on inflation this year.”
Source: Coventry Telegraph