UK Inflation at lowest levels since 1960!

[Andrew from Vista Financial]

I found this quite intereting, thought maybe someone others might.

 

Inflation

CPI up to 3.2%, RPI down to 0.0%

 

 

 

Consumer Prices Index (CPI) annual inflation – the Government's target measure – was 3.2 per cent in February, up from 3.0 per cent in January.

 

 

Retail Prices Index (RPI) inflation slowed to 0.0 per cent in February, down from 0.1 per cent in January. The main factors affecting the CPI also affected the RPI. Additionally, there was a large downward pressure from housing with the main effect coming from mortgage interest payments which are excluded from the CPI.

 

RPIX inflation – the all items RPI excluding mortgage interest payments – was 2.5 per cent in February, up from 2.4 per cent in January.

 

As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate in January, at 3.0 per cent, was above the provisional figure for the European Union as a whole of 1.7 per cent

 

Notes:

CPI is the Consumer Prices Index. It is the measure adopted by the Government for its UK inflation target. The Bank of England's Monetary Policy Committee is required to achieve a target of 2 per cent. Prior to 10 December 2003, the CPI was published in the UK as the harmonised index of consumer prices (HICP).

 

RPI is the Retail Prices Index. The uses of the RPI and its derivatives include indexation of pensions, state benefits and index-linked gilts.

 

Inflation is the percentage change in the index compared with the same month one year previously.

 

The next publication date is 21 April 2009.