New Inflation Rates

Tuesday 16^th August 2011

Circular No. National Policy 153/11/MC

To the Secretary all Branches,

Council of Executive members,

Regional Councils and Regional Offices.

Dear Colleagues,

New Inflation Rates

The Office of National Statistics has just published new inflation figures for the twelve months to July 2011.

The Retail Price Index (RPI) for this twelve monthly period is 5%, unchanged from the figure for the twelve months to June 2011.

The Consumer Price Index (CPI) is 4.4% for the twelve months to July 2011. This is up 0.2% from the figure for the twelve months to June 2011.

Upward pressures on the CPI came from a number of different ‘areas’, the largest being:

• miscellaneous goods & services where the upward pressure came from a wide variety of goods and services but by far the largest contribution came from financial services where, overall, fees rose this year but fell a year ago, particularly for arranging mortgages

• clothing & footwear where prices, overall, as usual fell between June and July due to the summer sales season. Prices this year fell by less (-3.5 per cent), though, than a year ago (-4.9 per cent). The upward effects came from men’s and children’s outerwear

• furniture, household equipment & maintenance where prices also usually fall between June and July due to the sales season. Again, though, prices fell by less this year (-1.1 per cent) than a year ago (-1.9 per cent). The most notable upward effects came from most types of furniture & furnishings and household textiles

• housing & household services where the largest effect was due to increases in housing rent, particularly for social housing provided by registered social landlords

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.

Additionally, rail fares have increased by July RPI + 3%. This means that train operating company regulated fares will increase by 8%.

Please see attached a table which shows the increase in rail fares in the constituencies of DfT Ministers.

Yours Sincerely

Bob Crow,

General Secretary