RPI Falls Below 1% Consumer Inflation Falls to 3%
Published / Last Updated on 16/02/2009
RPI Falls Below 1%, Consumer Inflation Falls to 3%
Figures released today show that Retail Price Inflation has fallen to 0.9% pa. RPI is our measure for our whole standard of living as it includes the increases in cost for a basket of standard goods as other items such as mortgage costs.
Consumer Price Inflation (CPI): the increase in the cost for a basket of standard goods has fallen to 3% pa. This is higher as it does not include mortgages costs falls but does include rising prices on clothes, furniture and other household items.
The Bank of England expects CPI to fall to as low as 0.5% in 2009 and possibly negative inflation and deflation for RPI meaning that prices will start to fall.
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