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Inflation eases back to 2.5%

THE headline rate of inflation returned to its downward trend in August, new figures revealed this morning.

CPI inflation fell from 2.6% to 2.5% while the broader RPI measure fell from 3.2% to 2.9%.

A surprise increase last month had raised concerns that inflation would not fall back towards the Bank of England's 2% target as forecast.

And while today's figures will be welcomed by policymakers, they were accompanied by fresh warnings that higher food and fuel prices expected at the end of the year are likely to push the CPI rate up again.

Source :

18 September 2012
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