British Inflation 2.5%?
The price index for gross domestic purchases rose 3.1%, implying a 0.1% contraction. However, even 3.1% is significantly below the 5% consumer price index increase. In part, this is likely because the gross domestic purchase index is probably "chain-linked", that consistently yields lower results than the "fixed basket" approach of the CPI. In part, it could also reflect that the CPI includes the effects of the increase in the Value Added Tax, while the gross domestic purchases index excludes it.