Rate of inflation rises unexpectedly

Both measures of inflation rose unexpectedly in July causing concern for savers, people on fixed incomes and rail passengers. The Consumer Prices Index (CPI) rose from 2.4% in June to 2.6% in July. The Retail Prices Index (RPI), which includes housing costs, rose by a larger amount, from 2.8% to 3.2%. The increases in both rates of inflation were partly down to higher air fares, which rose by 21.7% compared to last month. A lower than usual drop in clothing prices, due to many summer sales being moved forward, also contributed as did rise in housing costs. The figures from the Office for ...

Budget 2012: The main points

George Osborne has delivered the 2012 Budget; he opened by saying that the Budget would “reward work” and that Britain “is going to earn its way in the world”. He also said that it was a Budget for families and was “unashamedly on the side of business and aspiration.” So, what were the main points? How will you be affected? The main headlines were created by two announcements on Income Tax, so let’s start there. Income Tax The Chancellor announced the largest ever increase in the Personal Allowance to £9,205 from April 2013. The Chancellor said that 24 million people earning below £100,000 per year ...

Autumn Statement: Are you a winner or loser?

George Osborne gave his Autumn Statement yesterday, laying out the state of the nation’s finances and his spending plans for the coming months and years. To say the message was gloomy is an understatement, it is clear that the economic downturn will affect Britain for much longer than had originally been predicted and that any recovery will be a slow and painful process. How bad is the economic outlook? Are you a winner or a loser from Mr Osborne’s statement? What were the key points? Read on to find out. Winners Motorists January’s planned rise in fuel duty has been scrapped and Augusts’ rise ...