September 20, 2023
According to England’s Office of National Statistics (ONS) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 6.3% in the 12 months to August 2023, down from 6.4% in July. The Consumer Prices Index (CPI) rose by 6.7%, down from 6.8% in July. On a monthly basis, CPIH rose by 0.4% in August 2023 compared to an increase of 0.5% in August 2022, while CPI rose by 0.3% in August 2023, in comparison to a 0.5% rise in August 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.
In August 2023, the annual inflation rates saw a slight easing, primarily due to a mix of factors across six different divisions. The decrease in inflation was influenced by significant decreases in prices within the divisions of restaurants and hotels, food and non-alcoholic beverages, recreation, and culture, as well as furniture and household goods. However, these decreases were partially balanced by rising prices in the divisions of transport, and housing and household services, which contributed to a partial offset of the overall downward trend in inflation.
However, the most substantial downward influence on the monthly change in both CPIH and CPI annual rates were attributed to food and accommodation services, where Restaurants and hotels prices fell by 0.1% between July and August 2023. Notably, prices for motor fuel rose by 0.2% between July and August 2023, playing a pivotal role in counterbalancing these effects, offering the most significant upward contribution to the change in the annual rates.
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