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  1. Wealth
February 17, 2009

Breaking: Inflation eases to 3%

By Spear's

Inflation in January registered a much larger year-on-year rise than many economists had expected, given falling costs of fuel and housing and the rising slack apparent elsewhere in the UK economy.

From the FT:

Inflation in January registered a much larger year-on-year rise than many economists had expected, given falling costs of fuel and housing and the rising slack apparent elsewhere in the UK economy.

The consumer prices index rose in January at a year-on-year rate of 3 per cent, down from a 3.1 per cent rate in December, official figures showed on Tuesday.

But retail prices – the measure of inflation felt by most households – defied economists’ expectations of negative growth, registering a 0.1 per cent year-on-year rise in January as rising prices of household goods offset some of the impact of falling mortgage interest payments.

To read the full article, visit ft.com

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