Consumer Prices Index rises to 4.4% in July

CPI rises in JulyThe Consumer Prices Index (CPI) rose in July to 4.4% from 4.2% in June. The Retail Prices Index (RPI) was unchanged at 5%. The main drivers of the rise in CPI were increases in the price of clothing and footwear which saw their biggest increase since records began in 1997 and also rising fees in financial services which rose in July 2011 compared to a fall at the same time last year. Any downward pressure came from food and soft drinks. Exchange of letters The governor of the ...

High air fares, clothes and food cause UK inflation to stick at 3.1 pc  

High air fares, food and clothing have caused the UK CPI (Consumer Price Index) to stick at 3.1 pc according to the Office for National Statistics. RPI (Retail Price Index), which includes the cost of housing, reduced slightly to 4.7 pc down from 4.8 pc in July. The news has come as a shock to many experts who expected CPI to drop to 2.9 pc. The figure remains well above the Bank of England's 2 pc target and marks the end of a three month period during which the rate had been falling.