January 20, 2023
According to England’s ONS (Office of National Statistics) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose to 9.2% as at December 2022 while the Consumer Prices Index (CPI) rose to 10.5%. CPIH & CPI in November 2022 was 9.3% & 10.7% respectively. Consumer price inflation estimates suggested that the October rate was the highest observed in over 40 years. It was also noted that, “In the most recent month however, the CPIH annual rate was equal to the rate recorded just over 30 years earlier, between September and December 1990.”
Since December 2022, the largest upward contributions to the annual CPIH inflation rate came from increases in the divisions ‘housing and household services’ (principally from increases in electricity, gas, and other fuels) and increases in food and non-alcoholic beverages. On a monthly basis, CPIH rose by 0.4% in December 2022, compared with a rise of 0.5% in December 2021.
The largest downward contribution to the change in both the CPIH and CPI annual inflation rates between November and December 2022 came from transport (particularly motor fuels), clothing and footwear, and recreation and culture, with rising prices in restaurants and hotels, and food and non-alcoholic beverages making the largest partially offsetting upward contributions.
According to the Office of National Statistics, “The main drivers of the annual inflation rate for CPIH and CPI are the same where they are common to both measures. However, the owner occupiers’ housing costs (OOH) component accounts for around 17% of the CPIH and is the main driver for differences between the CPIH and CPI inflation rates. This makes CPIH our most comprehensive measure of inflation.”
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