Inflation slips to 0.2% in August 2020
17 September 2020
Statistics released by the Office for National Statistics (ONS) have revealed that inflation fell to 0.2% in the month of August 2020, having previously sat at 1% in the preceding month of July.
It is thought that the decrease in the rate of inflation has been primarily driven by the Eat Out to Help scheme, which saw massively reduced prices for consumers in various dining establishments, reduced air fares, and cuts to VAT, from 20% to 5% on accommodation, attractions and food.
Figures reveal that the largest contributors driving inflation up were toys and hobbies, games, accommodation services, and second-hand cars.
The Bank of England’s target is actually 2% and the 0.2% recorded is the lowest level that inflation has sat at since December 2015. It is hoped that, as the economy begins to return more and more to normality, the effect will be apparent on the rate of inflation, and it will start to increase.
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