When Mervyn King recently said that the fall in the exchange rate was helpful the governor of the Bank of England was merely stating an obvious truth.

ECONOMIST: The return of thrift

After watching the currency free-fall for several days, the Central Bank of Iceland stepped in Tuesday to fix the exchange rate of the krona at 175 a level equal to 131 krona against the euro.

NPR: Iceland Shivers From Financial Crisis

Despite the fall in June's inflation rate, the figures mean the CPI rate has still overshot the Bank of England's 2% target for 35 of the past 41 months.

BBC: UK CPI inflation in surprise fall to 4.2% in June