Crude oil prices come down

9 October 2008

The price of crude oil has dropped to its lowest point in a year, falling to $86 (£50) a barrel.

This development has been welcomed by the British Retail Consortium (BRC), as it believes it may represent a slowdown in the food price inflation.

Speaking to the Times, BRC director general Stephen Robertson said: "The man in the street will feel a little more confident."

The drop in the price of crude oil comes after the Bank of England cut interest rates by 0.5 per cent yesterday.

This decision was made in tandem with other central banks across the world, including Canada, Sweden and Switzerland, while the Bank of Japan has expressed its support for the move.

Mr Robertson said this, combined with lower commodity prices, could be positive news for consumers ahead of the festive season.

"This is particularly important in the run-up to Christmas," he stated.

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