Current Inflation Rate – July 2009

Official figures released today show the Consumer Prices Index (CPI) held firm at 1.8% in July 2009, the first time the rate of inflation hasn’t fallen for several months. The Retail Prices Index (RPI), while still in minus territory, also rose slightly.

Data from the Office of National Statistics reveal that downward pressures on inflation were largely exerted by food and non-alcoholic drinks.

Following large price rises in food and drink due to seasonal supply issues last year, the decline in the cost of produce in this area makes sense.

Other sectors to have dropped prices include hotels and restaurants perhaps looking to offer good deals to consumers to make the most of an anticipated ‘stay-at-home’ holiday trend – i.e. people holidaying in the UK, rather than abroad.

The RPI rose by 0.2% to reach -1.4% in July compared to -1.6% the previous month.

[Picture credit: Dave McLear licenced from Flickr]