This will be a relief to the Bank of England after inflation touched a stonking 5.2% in September last year following the introduction of the new VAT rate (VAT is similar to GST in Australia - VAT in Britain now has a standard rate of 20% since January 2011, by the way!).
The Bank of England is compelled to write an 'open letter' to explain what's going on if inflation stays above 3% for more than three months in a row. So they'll be happy this month!
What this does mean is that the printing presses will quite probably be back on soon - expect another cool £50 billion or so to be pumped into the economy (quantitative easing or 'QE' of £325 billion and counting so far already in the last 18 months) in a desperate bid to stimulate the floundering economic growth.
The lower inflation also introduces a significant chance of the interest cash rate going down, down, deeper and down as early as next month...by another 0.25% to the bargain basement level of 0.25% in order to breathe life into the ailing economy.
Unemployment in the UK is also well above 8%.
Now, remind me again: what have we all been complaining about in Australia?