In September UK inflation hit 5.2% and this was blamed on the rise in energy bills. However, analysts have expressed that this should be the peak and inflation should begin to fall as a result in the lower price of oil and the fall in consumer demand as the economy tightens.
The Consumer price inflation rose from 4.7% in August. The key issue to be aware of now is to see how far inflation will drop as the food and energy effects slow down and in some cases go into reverse.
Septembers Retail Price Index (RPI) which is used to work out benefits and state pensions in the coming year reached 5% compared to 4.8% one month earlier. Pensions usually increase by 2.5% or by more than the RPI – whichever is higher. This means that the government faces paying billions of pounds more in benefits and pensions.
The recent economic downturn has seen a change from inflation to recession being the key risk to the UK economy. Lets hope we can battle through and face any challenges that are thrown at us.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment