P.M. BRIEFING : British Inflation Eased in Jan.
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LONDON — British inflation eased to 9% in January from December’s 9.3%, the government said today, expressing optimism that prices will continue to fall as the economy copes with recession.
The nation is struggling with a recession deepened by high interest rates imposed by the government to keep prices from rising.
Inflation, measured by the retail price index, has declined from a peak of 10.9% last fall. However, the average rate of inflation in the 24 leading industrial nations is 5.2% annually.
Cheaper gasoline and price cuts in New Year store sales helped to bring down British inflation in January.
The government, after a preview of the figures, shaved base interest rates to 13.5% from 14% Wednesday and hinted at further cuts if inflation continues to abate.
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