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Inflation gloom
Inflation has so far failed to fall significantly, defying many predictions. In the year to March, the Retail Prices Index (RPI) rose by 13.5%, the Consumer Prices Index (CPI) by 10.1% and CPI with a housing element (CPIH) by 8.9%.
While slight falls were attributed to reduced transport and housing costs, prices for food and non-alcoholic beverages rose at their highest rate for over 45 years, by 19.2% (on a CPI/CPIH basis).