New inflation figures put interest rate rise on hold

The UK's retail price index rose just 1% in the 12 months to June according to the Office for National Statistics, the lowest such annual increase on record since the mid-1970s and news that is likely to ease pressure on the Bank of England to raise rates when its Monetary Policy Committee meets next month. Although house prices are still rising fast, the RPI figure is down from 1.1% in May as food producers, retailers and services providers cut costs to compete and retain market shares. The retail price index excluding mortgates registered an even greater fall, with this inde...