Inflation falls to four-year low
The rate of Consumer Price Index inflation has fallen to a four-year low of 1.7% last month. The main factor in the decline was fuel prices. The rate of Retail Price Index inflation dropped to 2.7%.
Falling inflation: The key points
- The largest contribution to the rate fall came from lower petrol prices, utility bills and clothing and footwear
- Furniture and household goods became more expensive
- Books were 6.6% dearer on the year
- Tablet computers and printers were more expensive
- Inflation in food and non-alcoholic drinks fell to 1.8%
- CPIH - a new measure of inflation - fell to 1.6%, down from 1.8% in January
- RPIJ fell to 2%, down from 2.1% in January.
-
Stage set for living standards to get better
Wages should begin to grow with the economy, setting the stage for living standards to improve, but there is a lot of ground to make up.
-
Falling inflation could change the debate on the economy
Figures on rising private sector wages are politically explosive and could change the debate on the economy.