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date: 18 November 2008

embargo: For immediate release

Falling inflation is welcome news

Responding to inflation figures published today (Tuesday), which showed the Consumer Prices Index (CPI) falling from 5.2 per cent to 4.5 per cent and the Retail Prices Index (RPI) falling from 5 per cent to 4.2 per cent, TUC General Secretary Brendan Barber said:

'It is good news that inflation is coming down. The Bank of England should take this opportunity to cut interest rates further.

'But this drop in prices is also a sign of how rapidly the economy is shrinking. The Government must investigate urgently every method to get the banks lending again. Otherwise, lower interest rates will do nothing to save jobs and businesses.'

NOTES TO EDITORS:

- The Consumer Price Indices are produced by the Office for National Statistics (ONS) and are available at www.ons.gov.uk

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk

Press release (300 words) issued 18 Nov 2008