Inflation eases to 1.5% as house prices rise 11.7% in a year

The UK inflation rate has now been below 2% target for 8 months.

by Elizabeth Anderson

The UK inflation rate fell to 1.5% in August as the cost of petrol, food and non-alcoholic drinks declined, the Office for National Statistics said.

It means inflation has been below the Bank of England’s 2% target for 8 months, the longest stretch since May 2005. The Bank will now be under added pressure to consider raising interest rates from their record low of 0.5%.

Prices of food and non-alcoholic drinks fell by 1.1% - the steepest fall since 2003 – as competition between rival supermarket chains pushed down prices. However, the gains were offset by a rise in the cost of clothing, transport services and alcohol. It means that a basket of goods and services which cost £100.00 in August 2013 would have cost £101.50 in August 2014.

Sign in to continue

Sign in

Trouble signing in?

Reset password: Click here

Email: mtsupport@haymarket.com

Call: 020 8267 8121

Register

FREE

  • Up to 4 free articles a month
  • Free email bulletins

Register Now

Get 30 days free access

Sign up for a 30 day free trial and get:

  • Full access to managementtoday.co.uk
  • Exclusive event discounts
  • Management Today's print magazine

Join today