15 November 2011 #Employment
The rate of Consumer Prices Index inflation in the UK fell slightly during October to 5%. This is down from a rate of 5.2% in September. Falls in the price of food, air transport and fuel helped to push the inflation rate lower.
Retail Prices Index (RPI) inflation - which includes mortgage interest payments - also fell to 5.4% from 5.6% in September, when the RPI was at 20 year high.
Despite the drop, the rate still remains well above the Bank of England`s target of 2% and the government has acknowledged that inflation remains high.
This news comes at the same time as The Telegraph reports that the gap between take-home pay and inflation has widened since June 2011.
Take-home pay is down by an average of £40 per month compared to a year ago, and £68 per month compared to two years ago, revealing a long-term fall in workers` spending power. The sluggish economy, high inflation along with weak take-home pay growth means consumers purchasing power will be substantially eroded for some time to come.