Tuesday, Jan 20, 2009
VAT and mortgage costs down
BBC: Big fall in UK inflation to 3.1%
Consumer price inflation fell sharply in December to an annual rate of 3.1% from November's figure of 4.1%.
The change was due to falling petrol prices and the reduction in VAT from 17.5% to 15% that was announced in the pre-Budget report on 24 November.
The headline rate of inflation measured by the Retail Prices Index (RPI) fell to 0.9% from November's rate of 3%.
RPI takes account of mortgage costs, which also fell following December's cut in interest rates.
Posted by phdinbubbles @ 09:38 AM (821 views) Add Comment
8 Comments
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1. inbreda said...
"The change was due to falling petrol prices and the reduction in VAT "
That's odd because I distinctly remember wondering how RPI managed NOT to increase when petrol prices went skyward. How come it can only have a reducing effect?
And as for RPI being affected by tax changes - that just sounds like government manipulation.
2. 51ck-6-51x said...
the ONS report
3. paul said...
It's still above target, and with interest rates at 1.50%, inflation is still destroying savings despite the BBC's propaganda about the deflationary threat.
I do find it astonishing how the BBC can say something when the figures point ot the exact opposite.
4. 51ck-6-51x said...
inbreda - increases in fuel costs did push up RPI previously, but it was less noticeable due to the inclusion of mortgage costs and food, so less likely that it was reported.
5. mark said...
hi all
i am back from the states and nothing changes, we still get fed the usual BS from the government bodies
6. Safe As A Crash said...
thats good news, however one cant afford it if you're not employed...
7. plato said...
big fall in UK inflation............
That's because it's Deflation and that's why they'll print money.......and that's why we'll move into inflation if not hyperinflation in the future.
(Hi) mark my words!
8. Browneconomy said...
So today 3.1% inflation over past year and inflation is "FALLING"
but we are told Council Tax to "RISE" by 3.5%
Just to anoy us savers:
"To pay a £1500 Council Tax bill from savings income you needed savings of £100000 at 1.5% base rate i.e 1500/.015
to pay the RISE (52.50 at 3.5%) you need the income earned on a further £3500 of capital"