UK Inflation Rate Continues To Fall

Cheaper airfares and reduced costs in sea travel helped to push the UK inflation rate down during September, according to official figures released by the Office of National Statistics today.

The new figures show a decline of 0.2% in the Consmer Prices Index, pushing the total down to 1.1% in September, bringing it still further below the Bank of England’s target of 2%.

The underlying rate of RPI inflation, which includes mortgage interest repayments, also fell during September, dropping to 3.1% from 3.2% in August, a dip of 0.1%.

Amongst the principal downward influences on the CPI were reduced costs in food and telephone charges, as the price of fixed line calls fell this year to reflect the cheaper cost of calls to mobile phones. Hotels and restaurants also helped to push the figure down, with cost of alcohol served on the premises reduced from last year.

The RPI’s reduction came mainly from fares and other transport costs, in addition to a large downward contribution from the purchase of second hand motor vehicles.

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