Skip to main content

CPI inflation rate plunges to just 0.2 PER CENT as government's Eat Out discount scheme and tumbling air fares keep prices down

Inflation plunged last month as the government's Eat Out scheme and tumbling air fares suppressed prices.

The CPI measure dropped from 1 per cent in July to just 0.2 per cent in August, according to official figures.

The sharpest fall in years was driven by Rishi Sunak's discount of up to half price on meals out, but also by lower prices as the travel industry desperately tried to entice customers.

The only major offsetting effect came from higher costs of games, toys and hobbies, according to the Office for National Statistics. 

Inflation has been particularly volatile due to the impact of the coronavirus crisis, but the numbers could reduce pressure on the Bank of England to ease its monetary stimulus or raise interest rates.

The CPI measure dropped from 1 per cent in July to just 0.2 per cent in August, according to official figures

The CPI measure dropped from 1 per cent in July to just 0.2 per cent in August, according to official figures

Jonathan Athow, deputy national statistician at the ONS, said: 'The cost of dining out fell significantly in August thanks to the 'Eat Out to Help Out' scheme and VAT cut, leading to one of the largest falls in the annual inflation rate in recent years.

'For the first time since records began, air fares fell in August as fewer people travelled abroad on holiday.

'Meanwhile the usual clothing price rises seen at this time of year, as autumn ranges hit the shops, also failed to materialise.'

Rishi Sunak (pictured on a visit to a pottery in Stoke-on-Trent yesterday) has hailed the Eat Out discount scheme as a huge success

Rishi Sunak (pictured on a visit to a pottery in Stoke-on-Trent yesterday) has hailed the Eat Out discount scheme as a huge success

Comments

Popular posts from this blog

EXCLUSIVE: From a $US13million mansion to a caravan: How the Australian wife of Il Divo singer has been 'forced' to live in a dodgy trailer park after a wildfire burned down their house during a bitter divorce battle

'Forced' into a 'mobile home park': Renee Izambard (nee Murphy) with her estranged husband, the suave Il Divo opera singer Sebastien Izambard An Il Divo opera singer's estranged Australian wife claims she was 'forced' to live in a caravan park after their $US12.95million Malibu mansion burned down in a wildfire days just after she filed for divorce.  Details of one-time Sydney Sony Music executive Renee Izambard's new life after her messy split with French tenor Sebastien Izambard were laid bare in a lawsuit filed with a Californian court this week. Ms Izambard (nee Murphy) is suing insurer State Farm, her estranged husband, an insurance agent and up to 20 others, over an allegedly 'inadequate' policy which covered the couple's destroyed former Malibu home.  Their five bedroom residence - described as a 'no expense spared ... oasis' - and its two guest houses went up in flames on November 8, 2018 during California's devastating Wo...

The HS2 money pit: Ministers are told first stage of high-speed rail line may cost another £800m... six months after a budget increase saw total costs soar by £20.6bn to £43billion

Ministers have been told that Phase One of controversial rail line HS2 could cost £800million more than planned. It comes just six months after a budget increase saw total predicted costs for the first stage of the high-speed line soar by £20.6billion to £43billion. In a written statement to Parliament, HS2 Minister Andrew Stephenson said half of this figure is due to preparation of the route for construction involving 'more significant challenges than anticipated'. This includes the need to remove more asbestos than expected. Another 'significant cost pressure' worth £400 million has also been identified during the development of designs for Euston station. Mr Stephenson warned that further investigation is being carried out which 'could identify further pressure'. Ministers have been told that Phase One of controversial rail line HS2 could cost £800million more than planned. Pictured: HS2 Minister Andrew Stephenson The HS2 route would initially link London and...

Tests may spare school bubbles from isolating: Children could avoid disruption to lessons by being screened for Covid more often under new proposal

Ministers will explore whether children could take more Covid tests instead of self-isolating to minimise disruption to their schooling. Sajid Javid said he was seeking ‘fresh advice’ on the current policy, which sees up to 250,000 pupils miss school every day. He revealed he would discuss the subject with Education Secretary Gavin Williamson after MPs expressed concerns about children being kept at home for ten days – even after a negative PCR test – because a member of their classroom bubble has been infected. It came as the Children’s Commissioner told how pupils had experienced ‘real trauma’ during successive lockdowns. Sajid Javid said he was seeking ‘fresh advice’ on the current policy where children self-isolate, which sees up to 250,000 pupils miss school every day Dame Rachel de Souza described the class bubble system as ‘very very restrictive’, adding: ‘I think everybody would like it if we could get back to normal, as soon as possible.’ Former health minister Steve Brine tol...