Home > Great Britain > Weak pound stops inflation falling below zero – Telegraph

Weak pound stops inflation falling below zero – Telegraph

I don’t whether one should be happy or not, is this bad news or is this good news. I am assuming that media houses; newspapers highlight bad news only therefore, we must assume it’s bad news otherwise they wouldn’t publish the story!

The Retail Prices Index, the widest measure of inflation, fell from 0.1 per cent in January to 0 per cent in February – the lowest level since March 1960, but far higher than economists were expecting.

Most thought RPI would fall well into negative territory, hitting minus 0.8 per cent, as falling mortgage costs for the millions of people on tracker rate mortgages pushed the index down.

But then the really bad news follows;

The British Retail Consortium has also warned that food prices, which had started to fall markedly thanks to plunging commodity costs such as wheat, are now rising once again.

This is because the majority of goods on shop shelves – from food, to electrical goods, toys and clothing – are imported.

Investors, fearing for the state of the British economy, have sold sterling on the international currency markets, forcing down the value of the pound from above $2 a year ago to $1.46 this week. This has pushed up the price of any imports.

For more see the link below;

Weak pound stops inflation falling below zero – Telegraph.

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