UK Inflation Falls Again

UK Inflation Falls Again.

Despite property prices inflation running at over 9%, the main headline rate of inflation CPI fell again in March to just 1.6%.

This is the lowest rate of inflation since records began.

The fall is attributed to small rises only in clothing and petrol prices falling.

Comment

CPI is the newer measure of inflation that many pension scheme benefits are based upon.  This means rises will be smaller.

The old measure of inflation, Retail Prices Index (RPI) used to include property costs which are now not included in CPI.  RPI fell too but to 2.5% from 2.7%.

Clever move, as we keep suggesting, by government to switch many benefits and government led pension schemes to CPI increases.