Inflation fell last month to the lowest level in 2-and-a half years. The unexpected 0.4% drop now makes the CPI index - which indicates how fast prices are rising compared with a year earlier - 2.4%: and it’s the third consecutive monthly fall. You have to cast your mind all the way back to November 2009 when it was almost that low at 1.9%.
So what’s prompted the slow-down in the prices we pay for things in the shops? Well, according the Office of National Statistics who issued the figures today, the dreadful rain we’ve been having made clothes and shoe shops in particular slash their prices in summer sales to try and get people through the doors. The cost of transport, soft drinks and food (particular meat – because we were cancelling all our summer barbecues) dropped too.
The inflation drop means a little less pressure on us all, which is a bit of good cheer, especially as there’s not much in the way of wage rises around for anyone right now.
An economic spokesperson to the Treasury said "This lower inflation should support high street spending and growth in the economy in the months to come." They hope!!! The 2.4% figure is now on target with what the Bank of England wants it to be: which is 2%, meaning they might be more willing to pump some more money into the economy.
I’m Marverine Cole, for more news go to ibtimes.co.uk
Written and Presented by Marverine Cole