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Inflation drops to 1.2%

THE headline rate of inflation continued its downward trajectory last month, falling to 1.2%.

The Office for National Statistics said the Consumer Prices Index (CPI) figure was down from 1.5% in August.

It said falls in transport costs, notably sea fares and air fares, and prices for a "range of recreational goods" provided the largest contributions to the slowdown.

Upward effects came from housing and household services, including utility bills.

"If falling food and motor fuel prices were excluded, the rate of inflation would be a third higher," said the ONS.

The Retail Prices Index (RPI), which takes into account housing costs, grew by 2.3%, down from 2.4%.

Source : James Graham -


14 October 2014

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