Inflation falls to 2.2%

The latest figures from the Office for National Statistics (ONS) have shown that annual inflation fell in May to 2.2%, down from 2.3% in April.

The fall takes the inflation rate closer to the Government`s target of 2%, and this may take some of the pressure off the many people who are struggling with debt due to rising costs of living over the past 18 months.

However, there are some fears that the economy could eventually fall into deflation (in which average prices fall). While this might hold some short-term benefits for people affected by the recession, the effects on the wider economy - such as (potentially) higher unemployment - could make the situation a lot worse.

A spokesperson for debt management company Gregory Pennington said: "It`s impossible to predict accurately what will happen to the economy, and as such it`s very important that people try to get their finances in order and tackle any debts as a matter of priority. Anyone who finds themselves struggling should speak with a professional debt adviser."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.