Inflation down to 1.5% in August
17 Sep 2014
The Office for National Statistics (ONS) has released figures showing that fuel and food prices fell, contributing to an expected drop in inflation last month.
Considering the months of July and August, the ONS said: ‘Petrol prices fell by 1.8% between the two months this year, compared with a rise of 2.0 pence per litre a year ago. Prices of food also fell this year but rose a year ago, particularly in the milk, cheese and eggs category’.
By contrast, clothing, transport services and alcohol have continued their upward trend. ‘The main effect came from price rises on women’s outerwear’, said the report. ‘Within transport services, the upward effect came from sea and air transport and within alcohol it came from spirits and wine’.
The Bank of England (BoE) set a target for inflation of 2% this year, with slow price growth keeping it well below that figure, and keeping the BoE from raising interest rates.