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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Surprise fall in UK inflation rate

The Consumer Prices Index fell to 4.0% in March from 4.4% in February, according to data released by the Office for National Statistics. This came as a big surprise to most analysts as it was expected that the index would continue to push up to the 5% mark. It seems that we have to be thankful to falls in food … Continue reading

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What are the implications of the rise in prices last month?

So, inflation is still on the rise. The government’s target measure of CPI rose from 3.0% in February to 3.4% in March. This was mainly due to the cost of gas and petrol prices and a spike in food prices. A weak level of sterling is coupling with very high prices for oil and other commodities, and on top of … Continue reading

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Largest ever increase in UK inflation

CPI annual inflation which is targeted by the government, rose to 2.9% in December 2009 from 1.9% in November. This increase of 1.0% was the largest ever increase in the annual rate between two months.   Why was the increase so large, especially considering that the consensus amongst City economists was for a rise to 2.6%? The basic reason is … Continue reading

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Inflation higher than expected, but is it good news?

The consumer price index (CPI) for July was 1.8%, which was exactly the same as it was in June, and remained within the government’s 2% target. The CPI saw some downward pressure on prices from food, soft drinks, restaurants and hotels but these offset by rises in the prices of games, toys, hobbies and recorded media such as DVDs and … Continue reading

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