Inflation fell in July
Inflation fell in July but analysts suggest households continue to struggle against falling incomes. The consumer price index (CPI) measure remained well above the Bank of England's target, at 2.8 per cent, while the broader retail price index, was 3.1 per cent. The retail price index (RPI) measure of inflation used as a basis to set train fares as well as negotiate pay deals eased to 3.1 per cent in July from 3.3 per cent in June.
As far as the automotive industry is concerned, the news was seen as another positive sign. The National Franchise Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers across the UK, welcomed the news that UK inflation rates fell to 2.8 per cent in July.
Sue Robinson, NFDA director commented: “The NFDA is encouraged to see that inflation rates dropped in July offering some much needed rest bite to the consumer. A fall in inflation rates will help consumers by allowing them to retain a reasonable level of disposable income to consider larger purchases such as a new car. This news follows reports from the British Retail Consortium of an increase in high street retail sales of 2.2% during July, suggesting that consumer confidence is gradually beginning to grow.”
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