Official UK inflation falls to 0.2%
UK inflation has fallen to 0.2%, lower than previous months, meaning that price increases across the economy are coming to a virtual stand still.
What is inflation?
Inflation is the word used to describe how much prices have increased over the previous year. The cost of items we buy is measured and compared to the previous year. Most of the time, prices go up, so we get inflation! Over the past year, UK is inflation is up by only 0.2%. Last month inflation was 1% so the inflation rate is falling.
What are the latest numbers?
Confusingly, there are several different inflation numbers!
- CPI is the official rate. Up by 0.2%.
- CPIH is the official rate plus includes housing costs. Up by 0.5%.
- RPI is the “old” inflation measure. Still in use but not an “official” statistic. Up by 0.5%.
Inflation is lower than the previous month, which was 1%. Over the past month, games, toys, and transport have increased in price the most. The cost of eating out decreased in price as a result of the Government ‘eat out’ scheme.
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Note: The ONS are the Office for National Statistics who publish official data for the UK.