Inflation fell modestly in January as the artificial impact of last year's VAT rise was no longer shown in the figures.
The Consumer Prices Index (CPI) measure of inflation fell to 3.6% in January, down from 4.2% in December, according to the Office for National Statistics. Retail Prices Index (RPI) inflation - including mortgage interest payments - fell to 3.9% from 4.8%.
The drop brings CPI inflation to a 14-month low. However, the rate remains well above the Bank of England's 2% target. The prime minister welcomed the drop in the rate.
Gareth Osborne of APA said: “Inflation remains too far ahead of pay increases; with over 60% of our members reporting no increase in their salary over the past 12 months. With interest rates near rock-bottom savings are not yielding an adequate return and this is seen in the amount people have available to spend on nothing other than necessities. This is a vicious circle that will not be broken for sometime.”
APA encourages the Government to stimulate the economy by ensuring the Banks invest in small businesses; the only sector with the ability to create jobs, wealth and spending, or do it with hard cask themselves.
APA
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