Summary
Inflation figures show prices increased by 3.2% over the past year, but the rate of increase has slowed. Food items like pasta and sugar have seen price drops, contributing to the slowdown. This trend may influence interest rates, potentially making borrowing cheaper.
Key Facts
- Prices rose by 3.2% compared to last year.
- Inflation rates are higher than the Bank of England's target of 2%.
- Food prices drove a drop in the inflation rate; food and drink increased by 4.2% compared to 4.9% in the previous month.
- Chocolate prices increased by 17%, while olive oil prices fell by 16%.
- Clothing and footwear prices decreased by 0.6% over the year.
- Analysts expect the Bank of England may lower interest rates, making borrowing more affordable.
- Inflation affects the buying power of money, impacting both savings and earnings.
