Inflation Rate Hits Record Low

The underlying rate of inflation in the UK has fallen to its lowest since records began to be compiled in 1975. At 1.9%, it is well below the government’s target of 2.5% and is markedly lower than last month’s figure of 2.2% (see July Sees Steadying of Inflation Rate).

According to the Office of National Statistics, the headline rate of inflation for August was 3.0%. The headline rate in July remained the same as June at 3.3%, the highest for two years (see Inflation Climbs To 2.2%).

The Retail Prices Index for August remains at 170.5.

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