Tuesday, July 14, 2009
Not quite deflation
Data for June is set to show the Consumer Prices Index (CPI) falling to 1.8% - its lowest level since September 2007 - compared with 2.2% the previous month. RPI is expected to slip further to -1.5%. CPI has been on a downward trend since peaking at 5.2% in September last year, but has not fallen as quickly as forecast. But the steep rises in food and fuel costs last year, with oil hitting $147 a barrel in July 2008, have not been matched this year.