ONS reports inflation fall

News Update from Chartered Financial Management (UK) Litd: The ONS has reported that the UK’s inflation rate fell to 0% in August, down from July’s rate of 0.1%. The report has also shown that inflation measured by the CPI has also fallen, due to a rise in clothing prices and the effect of cheaper fuel prices. Ian Stewart, chief economist at Deloitte, said that with the price of essentials such as food and transport down on a year ago, “inflation is flat on its back”. According to Howard Archer, chief UK and European economist at HIS Global Insight, the figures have given the BoE further reason for caution on interest rates. Elsewhere, Andrew Sentance, senior economic adviser to PwC, said the boost to consumer spending from stable prices was support to overall economic growth. “This growth of domestic demand in the UK and western economies provides a counterweight to the slowdown we are seeing in China and some other emerging market economies,” he said.

Financial Times, Page: 3   Evening Standard, Page: 6   The Daily Telegraph, Business, Page: 1   Independent i, Page: 42   The Times, Page: 42   The Guardian, Page: 29   The Scotsman, Page: 5

Posted by Gordon on September 17th 2015

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