The consumer prices index has fallen to below the Government’s 2 per cent target for the first time since September 2007.
Inflation as measured by the Consumer Prices Index fell to 1.8 per cent in June, down from 2.2 per cent in May, figures from the Office of National Statistics revealed today.
The Retail Prices Index, which includes housing costs, mortgage interest payments and council tax, fell to its lowest levels since records began in 1948. The RPI was -1.6 per cent in June, versus -1.1 per cent in May.
Falling food and non-alcoholic drinks prices over the month drove the downward trend on the CPI. This time last year, the prices of both product categories grew.
The price of furniture items also contributed, rising by less than last year. However, the price of computer games rose by more than a year ago, the survey revealed.
These factors also impacted the RPI.