Inflation rate slows slightly
By politics.co.uk staff
Inflation has dropped 0.1% to 3.1% in July but it remains above target.
Bank of England governor Mervyn King will now have to write to the chancellor again explaining why.
The consumer price index (CPI) is still well above the Bank of England’s two per cent target rate while the retail price index (RPI) slowed to 4.8% from five per cent in June, according to the Office for National Statistics (ONS).
“Inflation may stand at 3.1% but the cost of many basic items has soared into double figures,” said Dave Prentis, general secretary of Unison.
“Buying bread, milk, tea, eggs – basic food for the family, paying for gas and electricity or putting petrol into the, car is a major worry for council workers, who are getting zero per cent this year.”
“Instead of piling more misery onto public sector workers the government should look at alternatives to pay cuts such as fairer taxes and targeting those banks that continue to revel in paying out super- bonuses to the super-rich.”
July inflation figures are watched closely because they are used to set rail fares.
