The rate of inflation has fallen in August, dropping to 2.5% in from 2.6% in July. The retail price index also fell to 2.9% from 3.2% in July.
One third of the high earners have switched to cheap supermarkets in an effort to make ends meet due to the recession according to a new report by Axa UK.
The growth figures for the UK economy in the second quarter of this year have been revised up, meaning that the economy has no longer shrunk by 0.7%.
There has been some great news for consumers in the last few months as inflation rates kept getting lower and lower.
Last autumn, the International Monetary Fund estimated that the UK economy would grow by 1.6% through 2012.
The Bank of England is going to print another £50billion in yet another round of quantitative easing to try and drag the UK out of its second recession.
Inflation has unexpectedly fallen to 2.8% in May from 3% in April which is the lowest level that it has been in 27 months.
Spain has today followed the UK back into recession. The country joined the UK in a double dip recession on the same day that the International Labour Organisation predicted bleak global unemployment.
For the first time since the 1970’s the UK has slipped into a double dip recession after the GDP fell by 0.2 per cent for the first quarter of 2012.