When there is a fall in inflation rate, means that there is a - TopicsExpress

When there is a fall in inflation rate, means that there is a general and persistent fall in prices. Then, people will have more money to buy things. Both Consumer Price Index and Retail Prices Index also fall. The prices of goods (including housing) becomes cheaper. Therefore, people would like to spend more and increases the demand. The values of pound has also decreased. However, there is a remained concerned about poor wage growth. Although inflation falls, people would not like to spend more because they only have the same amount of salary. F5A Holly Iong

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