The energy-driven slump in inflation in April is unlikely to concern the Bank of England much, but it might find the easing in underlying price pressures a little harder to ignore. And with the figures triggering the first in what we expect will be a series of letters from the Governor of the Bank of England to the Chancellor explaining why CPI inflation is more than 1ppt below the 2% target, the pressure on the MPC to loosen monetary policy further is likely to grow.
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