18th December 2007
Rate of inflation remains at 2.1%
The rate of inflation was unchanged in November, figures released today show.
Consumer Price Index (CPI) inflation, which tracks the price of a 'basket' of goods, remained at 2.1% for the second month running. However, the Retail Prices Index (RPI) figure, which also includes other items such as mortgage interest payments, rose to 4.3% in November, up from 4.2% in October.
The figures will be welcome news for the Bank of England, which is charged with maintaining CPI inflation at a government-set target of 2.0%. Although the rates pre-date this month's drop in the Bank interest rate, they suggest that inflation remains largely under control.
Many analysts had been expecting surging food prices to drive inflation higher. Some commentators now believe that the Bank will be able to make a further cut to the interest rate earlier in the new year.
Howard Archer, chief economist at Global Insight, said that the data kept the "door open for another interest rate cut early in 2008".
"Nevertheless, significant price risks persist and inflation still seems set to rise further over the coming months," he warned.
"Much will depend on to what extent economic activity appears to be slowing."
Consumer Price Index (CPI) inflation, which tracks the price of a 'basket' of goods, remained at 2.1% for the second month running. However, the Retail Prices Index (RPI) figure, which also includes other items such as mortgage interest payments, rose to 4.3% in November, up from 4.2% in October.
The figures will be welcome news for the Bank of England, which is charged with maintaining CPI inflation at a government-set target of 2.0%. Although the rates pre-date this month's drop in the Bank interest rate, they suggest that inflation remains largely under control.
Many analysts had been expecting surging food prices to drive inflation higher. Some commentators now believe that the Bank will be able to make a further cut to the interest rate earlier in the new year.
Howard Archer, chief economist at Global Insight, said that the data kept the "door open for another interest rate cut early in 2008".
"Nevertheless, significant price risks persist and inflation still seems set to rise further over the coming months," he warned.
"Much will depend on to what extent economic activity appears to be slowing."
- 21st November 2008 Official retail figures 'hide tough condition', says BRC
- 20th November 2008 Entrepreneurs 'should be school governors'
- 19th November 2008 Small businesses urged to register hazardous substances
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