Wednesday, 15 September 2010

Economic news


In the 3 months to July 2010, unemployment fell by 8,000 to 2.47 million. The overall UK unemployment rate remains at 7.8%. The worry amongst economists is that the unemployment rates will rise again later in the year as the effects of the government cuts begin to take effect.

Regional unemployment

Wales - fall from 8.4% to 8.3%
England - fall from 7.9% to 7.7%
Northern Ireland - fall from 7.1% to 6.8%
Scotland - rise from 8.9% to 9.1%


The CPI inflation rate remained at 3.1% in August, still well above the Bank of England 2% target and signalled the end of 3 consecutive months of falling inflation. The high rate was boosted by strong rises in air fares, clothing and food although fuel prices fell. RPI fell from 4.8% to 4.7%.

Points of note

  • CPI is used for the Bank of England's target
  • RPI, which includes housing costs, is important for wage negotiations and certain benefit negotiations.
  • A combination of record low interest rates and high rates of inflation mean the real value of savings is being weakened.

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