Bank Charges and UK Inflation

Bank Charges and UK Inflation - at www.moneyweek.com - the best of the international financial media

UK inflation figures have been telling a strange tale lately. On the new target measure, known as the Consumer Price Index, inflation has surged past the Bank of England's 2% target, to 2.4% in August, an uncomfortably high level considering that CPI inflation was down at just 1.1% in September 2004.

However on a different measure of inflation, the Retail Prices Index excluding mortgages (or RPIX for short), there is little sign of a threat. RPIX inflation in August was 2.3%, up only modestly from 1.9% at the low in September 2004 and below the Bank's former target - when this was the measure the Bank concentrated on - of 2.5%.

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