Tuesday, 18 October 2011

Out of control? New highs for inflation

The latest inflation figures are just out and will not make pleasant reading for the government.

The measure of CPI puts the rate in September up to 5.2 per cent that's 0.7 per cent up on the previous month and as September's consumer prices index (CPI) will be used to determine next April's rise in the basic state pension and other benefits will further undermine the government's attempts to reduce spending.

Meanwhile RPI annual inflation stands at 5.6 per cent in September 2011, the highest it has been for over 20 years. The last time RPI annual inflation was higher was in June 1991 when it stood at 5.8 per cent

The blame is being put firmly on the costs of energy....more soon

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