Rate of inflation falls sharply

The Office for National Statistics (ONS) has announced that both rates of inflation have fallen dramatically moving closer to the Bank of England’s target rate. Inflation measured by the Consumer Prices Index (CPI) fell to 2.4% in June, compared to 2.8% in May, against a target of 2%. The Retail Prices Index (RPI) also fell, from 3.1% to 2.8% over the same period. Prices are now rising slower than at any point since late 2009, and it is the third month in a row that the rate of inflation has slowed, mirroring Bank of England expectations. The news will come as a ...