15 September 1999
Spud prices chip away at inflation
PLENTIFUL supplies of potatoes have played a part in delivering Britains lowest rate of inflation for 36 years.
Unprocessed-potato price inflation dropped from an annual rate of 62% last April to minus 22% last month, dragging the overall RPI down by more than 0.25%.
The all-items Retail Prices Index (RPI) for August revealed annual price rises of just 1.1%, the weakest rate recorded by the Office for National Statistics (ONS) since July 1963.
The ONS said the fall in the annual rate from 1.3% in July was caused by the warm summer glut of seasonal food production.
Economists did not expect low food prices to continue.
- Financial Times 15/09/99 page 9