This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

UK inflation falls to 3.6%

  • Print
  • Comments (1)

The UK consumer prices index has fallen to 3.6 per cent in January, according to the Office for National Statistics.

The consumer prices index is down 0.6 per cent from 4.2 per cent in December. The retail prices index fell to 3.9 per cent, from 4.8 per cent in December.

The ONS has cited the rise in VAT from 17.5 per cent to 20 per cent in January 2011 as a significant contributor to the fall in both CPI and RPI between December 2011 and January 2012. The increase led to an increase in prices between December 2010 and January 2011. The ONS says there were no such pressures on prices between December 2011 and January 2012.

The ONS says the largest downward pressures on CPI came from fuels & lubricants, products bought in restaurants and cafes, tobacco, vehicle maintainance & repair, the purchasing of new vehicles and alcohol consumption. Annual inflation has now fallen by 1.2 per cent in the past two months.

The largest downward pressures to RPI came from motoring expenditure, alcoholic drinks, food and tobacco. At 3.9 per cent, RPI now stands at its lowest level since February 2010, when it stood at 3.7 per cent.

The Bank of England’s target rate for CPI is 2 per cent. In December 2011, Bank of England executive director and chief economist Spencer Dale said inflation would fall to around 3 per cent as early as March 2012.

  • Print
  • Comments (1)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Readers' comments (1)

  • But its not really 3.6%, its just the VAT increase has fallen out of the figures..

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


How do you plan to vote at the general election?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments