Wednesday, July 14, 2010

Inflation Rates Circular (July 2010)

Circular No. NP/128/10/MC

13th July 2010

TO: ALL BRANCHES, REGIONAL ORGANISERS, REGIONAL COUNCILS, & COUNCIL OF EXECUTIVES.

Dear Colleagues,

Inflation Rates Circular

The June rates of RPI and CPI were published by the Office for National Statistics on the 13th July 2010. The next publication date is the 17th August 2010. The June 2010 retail prices index rate is 5%. This is down from 5.1% in May. The Government’s preferred measure of inflation, CPI, is at 3.2%, down from 3.4% in May.

Within the miscellaneous goods and services category the upward effects came from house contents and car insurance where average premiums rose between May and June this year but fell a year ago. The annual inflation rate for all insurance in June 2010 stands at 22.2 per cent, a record. In air transport fares rose by more than a year ago particularly on European and long haul routes.

Additionally there was upward pressure to the change in the RPI annual rate from housing. This was driven by house depreciation, which rose this year but fell a year ago.

In pay submissions the RMT will continue to emphasise that your financial commitments have increased at a much greater rate than inflation and your living standards have suffered as a result.

Yours sincerely,

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Bob Crow

General Secretary

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