Figures have today shown that inflation has fallen to 4.1% in November which is less of a decrease than was expected. Some economists suggested that they thought inflation would drop to 3.9% in November and were therefore surprised as to what figures showed. Inflation is continuing to fall on the back of a drop in oil and energy prices. However, the CPI is still more than the government’s target of 2%. More economists have voiced concerns that inflation will continue to fall throughout the New Year and some are worried that deflation could be possible.
In terms of the economy this is not good as consumers will hold off purchasing in anticipation that prices will decrease in the future. This will not help the economy as spending is vital to ensure that the economy improves.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment