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Inflation down to 4.2% in November

By rotide
Created 16/12/2008 - 10:48

Inflation in the UK fell in November but not by as much as analysts had been predicting.

The Consumer Prices Index fell from 4.5% in October to 4.1% as falls in the cost of food and fuel kicked in but many economists had thought there would be a sharper fall.

The Retail Prices Index - which also includes house prices - fell from 4.2% to 3% as the housing market continued to plummet.

The Bank of England has slashed interest rates to just 2% in recent months in the belief that inflation will continue to fall.

It currently remains far beyond the government's target of 2.0% but there are fears that it could eventually fall so low that deflation becomes a serious threat to the economy.


Source URL:
https://www.newbusiness.co.uk/news/inflation-down-42-november