Show Hide Inflation is when prices rise. Inflation eats away at the value of wages and savings – if you earn 10% on your savings but inflation is 10%, the real rate of interest on your pot is actually 0%. The retail prices index (RPI) is often used in wage negotiations. Inflation should start to come down by Christmas.”The rise will extend the fall in real wages, as prices rise faster than pay. Retail sales figures to be released on Thursday are expected to show the first annual drop since March 2013, down 0.7%.

Source: The Guardian November 12, 2017 15:56 UTC