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Are things cheaper or more expensive?

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The cost of living has risen on one measure and fallen on another.

According to the Consumer Prices Index, in February things on average wre 0.7 per cent cheaper than they were a year earlier. In January the figure was 1.2 per cent.

But the Retail Prices Index says inflation rose by 3.3 per cent in February, up from 2.6 per cent in January.

The Consumer Prices Index excludes mortgage interest payments and household expenditure such as buildings insurance.

It is the measure that the UK government tends to highlight.


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