Jul 15 2008
Increase in food and fuel prices to hit inflation
July, 15
Rise in the inflation rates are rightly expected with the upward trend in the prices of food items and fuel. It was noticed that the rapid rise in the prices of these commodities has affected the inflation rates. It is known that the consumer price inflation is already at 3.3 percent which is 10-year high and even the bank of England has said that it is expecting a further rise in the prices of inflation later this year.
The figures have also shown that the number of people moving house is also at its lowest since 1978. All these figures have highlighted the fact that with such a market trend the spending of consumers is gradually slowing down.
Inflation has forced the consumers to restrict their spending with the rising prices of variety of commodities. This has put a pressure on the back of these consumers who are feeling a bit uncomfortable with the increase in prices of food and fuel.
Even the shopkeepers are facing a tough time with this price rise, as shoppers are not showing keen interest to splurge on commodities with this inflationary rise. The retail sale fell by 0.4 percent in comparison with June 2007, while total sale including stores rose by 2.1 percent. Food and drink was the only sector which showed some signs of growth, whilst clothing and footwear sales were at its low.
