Labour Research October 2003

Pay and prices

RPI sees small cut

Cheaper holidays offset higher petrol and clothing costs, cutting the annual rate of inflation to 2.9% in August.

The underlying rate, excluding mortgage interest payments, was steady at 2.9%.

The Harmonised Index Of Consumer Prices, which is to replace the underlying rate as the government's preferred measure, rose to 1.4% from 1.3%.