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.