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Retail and inflation figures lowest in years

15 Oct 2014

The Office for National Statistics (ONS) has reported that UK inflation fell to 1.2% in September, its lowest point since the same month in 2009.

Citing lower energy and food prices, the ONS said that the sudden dip based on the Consumer Price Index makes it unlikely that interest rates will rise until next year. The Bank of England’s (BoE) target inflation rate is 2%.

A Treasury spokesman said the fall in inflation was ‘further evidence that the Government’s long-term economic plan is working’.

Meanwhile, the British Retail Consortium (BRC) has said that total sales were 0.8% lower in September 2014 than the same month in 2013. This is the biggest drop in overall sales since December 2008.

Helen Dickinson, Director General of the BRC, said: ‘This can be attributed to a number of factors including the continuing decline in food sales. Furthermore, there was exceptionally low demand for items such as boots and coats. However, demand for big-ticket items continues to be strong’.