UK inflation falls to 1.6%

UK inflation

After six years of falling wages, rises in weekly earnings have caught up with inflation, which has fallen to 1.6%. It has now declined each month since January and is well below the Bank of England’s 2% target.

Weekly wages, including bonuses, rose by 1.7% in the year to February, up from 1.4% in January, according to the Office for National Statistics (ONS).

TheĀ ONS said the gap between average wage growth and inflation was now at its narrowest since April 2010, and that the last time this had happened was in mid-2008.

Consumer Prices Index (CPI) inflation stood at 1.7% in February and fell to 1.6% in March.

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