March 20, 2024
According to England’s Office of National Statistics (ONS) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.8% in the 12 months to February 2024, down from 4.2% in January. The Consumer Prices Index (CPI) rose by 3.4%, down from 4.0% in January. On a monthly basis, CPIH rose by 0.6% in February 2024, relative to an increase of 1% in February 2023, while CPI rose by 0.6% in February 2024, relative to an increase of 1.1% in February 2023.
The ONS highlighted, “The primary factors influencing the yearly inflation rates for both CPIH and CPI are identical in cases where the measures overlap. Nevertheless, a significant distinction between CPIH and CPI inflation rates arises from the owner occupiers’ housing costs (OOH) element, which constitutes 16% of CPIH. This aspect predominantly contributes to the disparities between the inflation rates of CPIH and CPI, thus establishing CPIH as our most all-encompassing gauge of inflation.”
The easing in the annual inflation rates reflected downward contributions from nine divisions, with two divisions contributing upward pressure. Significant decreases in inflation were observed in food and non-alcoholic beverages, as well as restaurants and hotels, although these were partly balanced by a notable increase in housing and household services.
The largest upward contribution to the monthly change in both CPIH and CPI annual rates came from housing and household services, a 0.4% increase in the rate between January and February 2024, primarily driven by upward effects from owner occupiers’ housing (OOH) costs and, to a lesser extent, actual rentals for housing, along with electricity, gas, and other fuels. The Largest downward contribution came from Food and non-alcoholic beverages, Prices rose by 0.2% between January and February 2024, compared with a monthly rise of 2.1% a year ago, as well as Restaurants and hotels, where prices rose by 1.0% between January and February 2024, compared with a rise of 2.0% between the same two months a year ago.
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