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Only clothing pushing up inflation, says report

29/03/2010

The latest inflation data showed that only an increase in products such as womens' clothing has applied upward pressure on the Consumer Price Index, enabling the drop in the rate of inflation last month to occur.

Women's outerwear was the most notable element in the rise in clothing and footwear, according to a report out today (March 29th) from the Office for National Statistics.

This contrasted with strong downward pressures from leisure services and housing and household services, including domestic energy.

Products like furniture, food, alcohol and tobacco also fell, as did transport costs.

Such influences could help ensure inflation is low and therefore makes it possible for the Bank of England to maintain its 0.5 per cent base rate, something that in turn could help keep down personal loan costs.

The next decision by the Monetary Policy Committee on the rate will be announced on April 8th, following this month's unanimous vote to maintain the status quo.
 

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