From The BBC:
A key measure of inflation has fallen below the Bank of England’s target rate of 2% for the first time since 2007.Lower food prices caused the Consumer Prices Index (CPI) to drop to an annual rate of 1.8% in June from 2.2% in May, official statistics showed. The Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments and housing costs, also fell, to -1.6% from -1.1%. The RPI is now at its lowest since ONS records started in 1948. The Bank of England aims to keep inflation at 2% to maintain price stability and more broadly, economic stability. ConsensusLower prices for meat, milk and fruit last month were the main reason for the fall in inflation.
“A significant downward effect also came from furniture prices, which rose by less than last year,” the Office for National Statistics said. It also pointed to a large upward pressure on the CPI rate from the recreation and culture sector, with computer games in particular rising by more than a year ago. The CPI…
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