Commenting on the fall in UK inflation from 2.4 per cent to 1.9 per cent Narinder Gill, Senior Economist at the British Chambers of Commerce, said:

"This drop in inflation should make it even more unlikely that the MPC will be in a rush to raise interest rates to 6 per cent any time soon.

"With the effect of the recent rate rises appearing to have the impact they were meant to and the increasing instability in the financial markets, it would be folly for the MPC to raise rates next month."