Spud prices chip away at inflation

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

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