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Inflation falls to 3.1pc
INFLATION has fallen from 3.2 per cent in June to 3.1 per cent last month, official figures have shown.
But the CPI rate is still above the government’s target of two per cent and so Bank of England governor Mervyn King will once again be obliged to write a letter of explanation.
Meanwhile the figure for RPI – which takes into account mortgage repayments – dropped from 5 per cent to 4.8 per cent, according to the data from the Office for National Statistics.
The main factors behind the drop in the inflation rate were the price of clothing and footwear, which fell by 4.9 per cent. A drop in the price of furniture and household equipment also contributed the reduction.