Inflation falling, but will it continue?

There was a fall in the Consumer Prices Index (CPI) in August, when it fell to 2.5% from 2.6% in July, according to the Office of National Statistics. At the same time the Retail Prices Index (RPI), which includes housing costs such as rent and mortgages, fell to 2.9% from 3.2% in July. The fall in inflation had been aided … Continue reading

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Surprise fall in CPI inflation in UK

There was an unexpected fall in the Consumer Prices Index (CPI) in May to 2.8%, from 3.0% in April. This brought UK inflation to its lowest level in two and a half years. There was also a fall in the Retail Prices Index (RPI) over the same months, from 3.5% to 3.1%. It was only in September last year that … Continue reading

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UK inflation continues to fall

The Consumer Prices Index (CPI) fell to 3.4% in February, from 3.6% the month before, according to the Office for National Statistics. This means that inflation has been on a downward path since September last year, and has fallen to its lowest rate since November 2010. The recent trend can be seen in the Figure below. RPI and CPI Percentage … Continue reading

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Latest figures released this lunchtime show that consumer prices in the OECD area rose by 2.9% in the year to December 2011, compared with 3.1% in the year to November 2011. This easing in the annual rate of inflation mainly reflected the slower growth in energy prices, which increased by 8.1% in the year to December, down from 11.6% in … Continue reading

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Inflation starts to slow

The Consumer Prices Index (CPI) fell to 5.0% in October from 5.2% in September. The largest downward pressures to the change in CPI annual inflation between September and October came from falls in the cost of food (due to significant and widespread discounting by supermarkets and good harvests for certain produce), air fares and petrol. But working in the other … Continue reading

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Sharp rise in UK unemployment

Recovery, what recovery? Unemployment rose by 80,000 to 2.51 million in the three months to July, according to figures released this morning by the Office for National Statistics. This means that the jobless rate now stands at 7.9%. The so-called Claimant Count – those claiming Jobseeker’s Allowance, rose by 20,300 in August to reach 1.58 million. There was also a … Continue reading

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Growth continues to slow in major economies

Gross domestic product (GDP) in the OECD area slowed to 0.2% in the second quarter of 2011, down from 0.3% in the previous quarter. This is the fourth consecutive quarter of slower growth. The slowdown was particularly marked in the Euro area and the European Union, where growth slowed to 0.2% compared to 0.8% in the previous quarter. Significant falls … Continue reading

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Slight fall in inflation in OECD area

Consumer prices in the OECD area rose by 3.1% in the year to June 2011, compared with 3.2% in May, according to figures just released. This is the first fall in inflation since November 2010. The reason for the fall in inflation was mainly due to a slowdown in the growth in energy prices which increased by 13.6% in June, … Continue reading

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Surprise fall in UK inflation

CPI, the government’s target measure of inflation, fell to 4.2% in June, down from 4.5% in May. This took economists by surprise, as there was a general expectation that inflation would rise this month. The biggest reason for the fall was the drop in prices in the recreation and culture category, which largely reflected lower prices for computer games and … Continue reading

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What are the implications of the high rate of UK inflation?

The latest figures show that CPI inflation in May remained at 4.5% as can be seen in the graphic below. At the same time RPI annual inflation was 5.2% and RPIX annual inflation, which excludes mortgage interest payments, was 5.3%. The UK CPI figure of 4.5% is well above the current EU average of 3.2%. Because high inflation has reduced … Continue reading

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