Inflation Rising

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Inflation Rising

Post by Guest on Tue Aug 16, 2011 10:21 am

All the cuts etc were supposed to bring inflation down. Yesterday we learnt that the cost of people appealing against ATOS refusing them disability allowance and winning their case was costing £5 million while they had said that cheating the system was costing £3 million, now inflation is on its way up again and we are all supposed to cope with it.



Pressure On Consumers As Inflation Rate Rises

Increased rent, earlier summer sales and higher charges for financial services have helped push the UK's inflation rate up once more.

Rent increases, particularly for those in social housing, helped drive up inflation

The CPI measure of inflation reached 4.4% in July, up from 4.2% in June, which puts it nearly at May's 4.5% level.

Meanwhile the headline rate of RPI inflation remained unchanged at 5.0% in July, the Office for National Statistics (ONS) said.

Under a new formula, that level of RPI inflation will see the price of rail tickets soar by 8% come January.

The ONS reported that no single factor drove the rise in CPI inflation, with upward pressure from a number of different areas.

More expensive rent payments, particularly for those in social housing, was one such area that put pressure on Britons.

The cost of clothing, footwear, furniture and other goods usually falls in July amid summer discounting, but reductions were made earlier this year, the ONS said.

It added that higher charges for financial services - such as arranging a mortgage - had put an additional burden on consumers.

The only downward pressure came from the sale of food and non-alcoholic drinks.

Prices for these products rose by 0.3% between June and July this year compared with a rise of 1% a year ago.

The increase in the CPI rate of inflation puts pressure on the Bank of England to increase the base interest rate in an attempt to curb inflation.

However, the Bank is grappling with a fragile recovery in the UK, which saw its economy grow by a mediocre 0.2% between April and June

http://news.sky.com/home/business/article/16050855

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