Pensions - Articles - CPI 12 month rate fell to 1.7 percent in August

 Steven Cameron, Pensions Director at Aegon: “The sharp deceleration in price increases for the year to August means price inflation falls to 1.7%, below the Bank of England’s target of 2% and the lowest level since December 2016. The annual rate drops from 2.1% in July, this is the sharpest monthly fall since December 2014. UK consumers should feel a boost from this drop, especially those in work as the latest figures for total earnings growth show an annual increase of 4% to July*.

 “However, with the latest Brexit deadline looming next month and with the threat of a sustained increase in the cost of oil following the disruption of oil supplies in the Middle East, future trends in inflation remain particularly hard to predict. With uncertainty ahead, it always pays to have some extra savings put aside to meet any future pressures on household budgets.”

 * Government Report