Labour Research August 2002

Pay and prices

Another new low for inflation

Inflation fell for the second successive month on the back of cheaper petrol and seasonal foods. In June the annual rate was 1.0%, down from 1.1% in May. The underlying inflation rate, excluding mortgage interest payments, fell to 1.5% in June from 1.8% in May and is at its lowest level for 27 years, when records began.