In the UK yesterday, the key measure of inflation fell below the Bank of England's target
rate of 2% for the first time since 2007. Lower food prices caused the Consumer Prices
Index (CPI) to drop to an annual rate of 1.8% in June from 2.2% in May. The Retail Prices
Index (RPI) inflation measure, which includes mortgage interest payments and housing
costs, fell to -1.6% from -1.1%. The RPI is now at its lowest level since the Office of
National Statistics (ONS) records began in 1948.
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