Inflation

FIVE THINGS

Consumers will go on spending more money on non-essentials if inflation continues to drop, a senior economist has said.

People are significantly limiting their retirement income by putting off pension planning until their early 30s, according to Friends Life.

The UK's main inflation rate has fallen to 2.2% in September from 2.5% in August, dropping to its lowest level for three years.

Investors are being forced to take on more risk as inflation continues to stay above the Bank of England's 2% target, experts said.

The UK's main inflation rate fell back towards the 2% target in August after reversing a surprise jump the previous month.

The number of flexible drawdown investors could rise in 2013 when the top rate of tax is cut to 45%.

The Consumer Prices Index (CPI) rate of inflation climbed to 2.6% last month, from 2.4% in June.

Better-than-expected German and French GDP figures have raised investor hopes that Europe's second largest economy will ease eurozone pain.

China's inflation level fell to a 30-month low of 1.8% in July, continuing to tumble as the global slowdown takes hold.