Interest rates secure on latest CPI data

Under the ‘old’ method of calculating inflation, the retail price index, inflation fell to an annualised rate of 3.1% from 3.2% the previous month - still well above the Bank's previous 2.5% long-term RPI target. The biggest cause of the change was air fares, which went down as the summer high season switched into the traditional autumn low season. Food and drink prices also rose less fast than at the same time last year, when supplies were affected by the hot, dry summer, the ONS says. Telecoms were cheaper as increases in mobile phone charges imposed last year were not repeated. ...