Everyday Loans for Everyday Life

 

 

Inflation rate drops to five year low

decreaseThe rate of inflation in the UK slowed in September to 1.2%, its lowest figure for five years, according to the Office for National Statistics (ONS).

Inflation was 1.5% in August and you have to go back to September 2009 when it was 1.1% to find the last point it was below its current rate.

Lower energy, food and transport prices were the reason for the fall, measured by the Consumer Price Index, according to the ONS.

The rate of inflation also fell when measured by the Retail Prices Index, from 2.4% in August to 2.3% in September.

The larger than expected drop in inflation led to calls from some quarters to delay when interest rates are increased in order to create confidence among small businesses.

Expectations for inflation are dropping across many developed economies while food prices are deflationary territory by 1.4% this year – the sharpest fall since 2002.

Supermarket price wars are a major factor behind this while the cost of oil has dropped by 24% since June, aiding consumers but stifling business.

This is a welcome boost for many families in the UK as essential goods will be more affordable but slow rates of wage growth limit the effects.

Some items can be costly to purchase or replace, so those with regular incomes may wish to spread costs by considering unsecured loans.

As long as repayments can be made within any agreed timeframes, these loans can ease some of the pressure placed on finances if an expensive purchase is a necessity.

The Bank of England has previously targeted an inflation rate of 2% before deciding upon an increase in interest rates, meaning the latest figures are well below that target.

Record low interest rates of 0.5% have existed for more than five years and a rise is expected in the first half of 2015.

However, as inflation falls away from the Bank of England target it may delay any potential increase.

Related Posts

Household bills soar since recession Household bills have skyrocketed since the recession hit, climbing by a whopping 40% since before the global financial meltdown. Families now pay a...
Households worse off than a year ago Nearly half of all households in the UK say they are now worse off financially than they were a year ago, new research has found. It has been revea...
How wedding traditions have changed over time   What comes to mind when you think of a wedding? Is it the white dress, black tuxedo and multi-tiered cake? Or do you see a purple dress, landing at...
Economic crisis leads fewer consumers to rely on c... Since the start of the recession in 2008, the number of British consumers willing to pay for their expenses with credit has decreased. More than a ...
Andrew Wayland on GoogleAndrew Wayland on LinkedinAndrew Wayland on TwitterAndrew Wayland on Youtube
Andrew Wayland
Marketing Director at Everyday Loans
Andrew Wayland is a financial marketing expert and helped set up Everyday Loans back in 2006. Prior to his position as Head of Marketing for Everyday Loans he worked as the Head of Commercial Development for a tech start up and ran his own PR agency for around 5 years. LinkedIn: https://www.linkedin.com/in/andrew-wayland-9018074