The policy of printing pounds and running a huge public sector deficit under the last government led to a large slide in the value of the pound. This was the main force behind the rise in inflation, taking the RPI to a 5.3% annual rise at the worst.
It is early days, and so far the move is modest, but since the arrival of the Coalition government, and more especially since the budget plans became clearer, the pound has risen a little. Starting at 1.18 Euros to the pound, today it is at 1.23. Against the dollar the pound pushed on above $1.51 yesterday, compared to $1.48 on May 6th. This is the way to bring inflation down. It reflects the beginnings of control over public sector costs.