Labour Research July 2005

News

Inflation drops to 2.9%

Cheaper motoring costs including oil and petrol prices meant that inflation fell in May. The annual rise in the Retail Prices Index (RPI) was down to 2.9% compared with 3.2% in April. The government's preferred inflation target - the Consumer Prices Index (CPI), which excludes housing costs - was steady at 1.9% for the third consecutive month.