Inflation Steady

Analysts were surprised to day to learn that the Consumer Price Index (CPI) measure of inflation for July has remained steady at 1.8%.

The "experts" had predicted a further fall, indeed the Bank of England are expecting it to fall below 1% at some stage.

However, reality is a cruel mistress and the figure remains stuck at 1.8%.

The Retail Price Index (RPI) measure of inflation (which includes housing costs) rose from -1.6% to -1.4%.