Tuesday, October 13, 2009
CPI & RPI Latest
A key measure of inflation has fallen to its lowest level since September 2004, official statistics show. The Consumer Prices Index (CPI) dropped to an annual rate of 1.1% in September from 1.6% in August. Meanwhile, the Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments and housing costs, fell, to -1.4% from -1.3%. The Bank of England aims to maintain CPI inflation at 2% to keep both prices and the broader economy stable. If CPI falls below 1%, the governor of the Bank of England will have to write a letter of explanation to Chancellor Alistair Darling.