Labour Research October 2012


Inflation falls on both measures

Inflation as measured by the Retail Prices Index (RPI) fell to 2.9% in August, down from 3.2% in July. Downward pressures on the rate included household goods, clothing and footwear and food.

Under the government’s preferred measure — the Consumer Prices Index (CPI) — annual inflation edged down to 2.5%, from 2.6% the previous month.