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UK inflation falls to 2.5%

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The UK consumer prices index has fallen to 2.5 per cent per cent in August, according to the Office for National Statistics.

The consumer prices index fell by 0.1 per cent from 2.6 per cent in July, while the retail prices index dropped to 2.9 per cent in August, a fall of 0.3 per cent from 3.2 per cent in July.

The drop in CPI was fuelled by downward pressures from furniture, household equipment & maintenance, housing & household services and clothing & footwear, although there was upward pressure from transport.

The fall in RPI came as downward pressures were seen in the household goods, clothing & footwear and food segments. According to the ONS, the only significant upward pressure came from fares & other travel costs.

Inflation has fallen markedly since its high in September 2011, but still remains well above the Bank of England’s 2 per cent target. CPI reached a record high of 5.2 per cent in September 2011 while RPI stood at 5.8 per cent in September 2011, its highest point since June 1991.


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There is one comment at the moment, we would love to hear your opinion too.

  1. Oh Goody, bloody goody. Best savings account 3.2% – less 20% tax = 2.5%. Inflation 2.5%. Result – NIL return.

    And the ONS thinks this is good news? It’s just less bad news.

    As long as inflation remains at a rate that decimates savings – all savings should be tax free.

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