The September inflation figures – how this will affect you

In September, the Office of National Statistics (ONS) announced the monthly UK inflation figures. Many people may only pay a passing interest into the monthly inflation rates, however, the September figures affect how the tax and benefit system will look in April 2013.

The Government uses September's Consumer Price Index (CPI ) figure to calculate a range of benefits, such as income tax thresholds, benefit amounts and public sector pensions, which are typically increased each April, in line with the rate of annual inflation measured in the previous September.

The figures highlight that the annual CPI inflation for September fell to 2.2% and Retail Price Index (RPI) to 2.6%. The CPI figure of 2.2% will have the following impact:

To find out how all this affects you and your financial position, please feel free to get in touch and we’d be happy to review it for you.

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