LONDON (MNI) – National Statistics said that the combined effect of
the measures announced in the recent Budget would add 0.17 percentage
point to consumer price inflation this year.
In the Budget, Chancellor George Osborne announced a number of
measures which would push the prices of goods and services up. These
includes increases in tobacco, fuel, vehicle excise and air passenger
duties. In total these would add 0.02 percentage point to the annual
rate in April if passed on to consumers in full.
The main upward impact, though, comes in August when an increase in
road fuel duty adds a further 0.12 to the yearly CPI rate.
By October, due to changes in some VAT measures, the cumulative
impact of all measures if passed on in full comes to a total of 0.17
percentage point.
–London bureau: 0044 20 7862 7491; email: puglow@marketnews.com
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