Labour Research August 2007

News

Interest rates push up inflation

Higher mortgage interest payments, resulting from May's increase in interest rates, pushed up inflation. In June, the Retail Prices Index (RPI) rose by 4.4% - up from 4.3% the previous month.

Meanwhile, inflation under the Consumer Prices Index (CPI), which excludes housing costs and is the government's preferred measure, fell to 2.4% in June - down from 2.5% in May. Cheaper energy prices aided the fall.