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RPI inflation falls to 49-year low

Depreciation in house prices and mortgage interest payments was blamed for the Retail Prices Index falling to the lowest annual inflation rate since 1960.

While the Consumer Prices Index fell to 3% in January, down from 3.1% in December, the RPI – which includes house prices and mortgage interest payments – fell to 0.1% in January, down from 0.9% in December.

The last time the RPI was as low as this was 49 years ago when it fell to 0.5%.

RPIX inflation – which includes all the items in RPI excluding mortgage interest payments – was 2.4% in January, down from 2.8% in
December 2008.


High time

If house price indices aren’t enough for you, you can usually measure the state of the economy in footwear. According to The Stiletto Index, women wear flatter shoes in tough times.

Sir James Crosby quits his post at regulator

Sir James Crosby, the former CEO of HBOS who was accused of silencing critics who complained that the bank was growing too fast, last week resigned as deputy chairman of the Financial Services Authority as his appointment was brought into question.

RBS bows to government pressure over bonuses

Royal Bank of Scotland has bowed to government pressure and conceded that there will be no bonuses or pay increases for staff associated with the major losses suffered in 2008.


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