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’.