Inflation _ Economy Still Shrinking
Published / Last Updated on 16/06/2009
Inflation - Economy Still Shrinking
The Office for National Statistics has released figures for May 2009 reaffirming that inflation is still falling i.e. the driver of inflation i.e. demand is still slowing down despite what some economists are suggesting.
Consumer Prices Index (CPI) has fallen to 2.2% from 2.3%. The Governments trend target is 2.0%.
Retail Prices Index (RPI) which also includes mortgage interest payments, has fallen further into deflation at -1.2%, down from - 1.1%.
We suggest this means that despite increased activity in the housing market through the summer, the trend is still down and we suggest will continue until the end of the year. Regrettably ,there are still many more jobs to go in addition to Government cut backs on public spending.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
