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%
Inflation
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.
