November 15, 2023
According to England’s Office of National Statistics (ONS) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.7% in the 12 months to October 2023, down from 6.3% in September. The Consumer Prices Index (CPI) rose by 4.6%, down from 6.7% in September. On a monthly basis, CPIH rose by 0.1% in October 2023 compared to an increase of 0.1% in October 2022, while CPI remain the same in October 2023, compared with a rise of 2.0% in October 2022.
“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,” highlighted by the ONS.
The easing in the annual inflation rates principally reflected negative contributions from three divisions, with large downward effects from housing and household services, food and non-alcoholic beverages, and restaurants and hotels. Recreation and culture provided the only large positive contribution.
The largest downward contribution to the monthly change in both CPIH and CPI annual rates came from housing and household services, where prices fell by 0.3% between September and October 2023 relative to a rise of 3.4% between the same two months a year ago, which contributed to the annual CPI rates falling to the lowest since records began in January 1950. The second-largest downward contribution to the monthly change in both CPIH and CPI annual rates came from food and non-alcoholic beverages, where prices rose by 0.1% between September and October 2023 relative to a rise of 2.0% between the same two months a year ago, thus contributing to the easing of the annual rates to the lowest levels since June 2022.
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