UK CPI inflation in surprise fall in June

Blacklight

UK CPI inflation in surprise fall to 4.2% in June

The UK inflation rate fell unexpectedly in June, with the Consumer Prices Index (CPI) measure dropping to 4.2%.
Markets had expected the figure to hold steady again at 4.5%.
The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - also fell, from 5.2% to 5%, according to the Office for National Statistics.
The latest data mean the CPI rate has still overshot the Bank of England's 2% target for 35 of the past 41 months.
It comes after the Bank again voted to maintain interest rates at a record low of 0.5% earlier this month.

What are the BBC going to report now? Reduced pressure on household incomes? They're going to have to start looking elsewhere for some doom and gloom.

purch

They're going to have to start looking elsewhere for some doom and gloom.

They just need to read this Forum :eek:

mr_fishbulb

It's because I bought those pesky NS&I index-linkers

undetterred

Blacklight wrote: »

What are the BBC going to report now? Reduced pressure on household incomes? They're going to have to start looking elsewhere for some doom and gloom.

I'm sure Devon can spin some gloom out of it.

casper_g

Blacklight wrote: »

What are the BBC going to report now? Reduced pressure on household incomes? They're going to have to start looking elsewhere for some doom and gloom.

A reduction in the rate of price inflation doesn't mean reduced pressure on household incomes if price inflation still exceeds wage inflation. All it means is that pressure on household incomes is rising less rapidly than before.

ILW

It amazes me that many people think that a fall in the rate of inflation means things are getting cheaper. (Including some on here).

undetterred

ILW wrote: »

It amazes me that many people think that a fall in the rate of inflation means things are getting cheaper. (Including some on here).

So things get dearer when inflation falls.

ILW

undetterred wrote: »

So things get dearer when inflation falls.

Yes they do.

Many cannot understand that, which is very sad.

peakoil_2

undetterred wrote: »

So things get dearer when inflation falls.

inflation has to be negative for prices to fall. a drop from 4.2% to 4% means that prices are rising a bit less this month than they did last month.

HAMISH_MCTAVISH

So the rate of inflation is falling.

Gosh, it's almost as if most of the inflation was caused by a surge of one-off price shocks..... Like VAT rising, currency changes, the commodity price rises last year, etc.

What a surprise.....

michaels

So you still see food and fuel increases as one of a step change to a new higher level rather than part of an ongoing 'squeeze' whereby increasing incomes in many developing countries, especially India and China, results in an increase in demand for food (especially resource intensive meat) and fuel that is much more rapid than the increases in supply?