Tuesday, August 13, 2013
Inflation falls - better news ahead?
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

Consumer price inflation edged down from 2.9% in June to 2.8% in July. The fear that one of Mark Carney's first tasks as govenor would be to write a letter explaining why inflation was more than 3% is subsiding. Figures for RPI inflation also showed a fall, from 3.3% to 3.1%.

This was quite a tough month to get inflation down. In July last year the consumer prices index rose by just 0.1% on the month. This time there was no change, hence the fall in inflation. There is a good chance of better falls in the months ahead: comparative monthly CPI rises last year were 0.5% August, 0.4% September and 0.5% October. More here.