Tuesday, 20 March 2018

'Turning point' as inflation falls to seven-month low

Inflation fell to a seven-month low last month raising hopes there has been a "turning point" in Britain's Brexit-linked cost-of-living squeeze.

The Consumer Price Index (CPI) measure of inflation fell to 2.7% in February, from 3% the month before, according to the Office for National Statistics (ONS).

That raises the prospect that wage growth, which has been lagging behind price increases and leaving consumers feeling worse off, could catch up soon.

Phil Gooding, ONS head of CPI, said: "Many of the early 2017 price increases due to the previous depreciation of the pound have started to work through the system."

Lower petrol prices and cheaper hotel rooms - compared to a period last year when price readings were taken on Valentine's Day - were among the reasons for the decline in CPI in February, which was slightly bigger than expected.

There was also a more muted rise in the cost of food and drink than in the same period of 2017, when a shortage of vegetables from Europe such as lettuce and courgettes affected supply.

By John-Paul Ford Rojas.
Full story at Yahoo News.

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