Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK inflation shows largest fall for over a decade

The announcement of inflation in December saw many analysts disappointed with the 3.1% rate which was a fall from the previous month's 4.1%. Despite the fact that this drop was the largest for over a decade many experts had expected the rate of inflation for December 2008 to have fallen as low as 2.7%. So why was the rate slightly higher than many expected?

It appears as though the Russian Ukraine gas dispute, which caused significant price spike in the European gas market, has delayed an expected reduction in UK energy costs until later in the year. If the Ukraine dispute had not occurred there is every chance that inflation would be well under the 3% level.

When you consider that inflation was heading well in excess of 5% only a few months ago a sharp reduction to 3.1% should assist many of the UK population in controlling the cost of living. However the cost of energy is still a significant problem for many and the longer the Russian Ukraine situation drags on the more chance that prices will rise rather than actually fall. This situation has played into the hands of UK energy companies who had been under significant pressure to reduce their charges in the latter half of 2008.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details