October 18, 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 September 2023, same rate as in August. The Consumer Prices Index (CPI) rose by 6.7%, same rate as in August. On a monthly basis, CPIH rose by 0.5% in September 2023 compared to an increase of 0.4% in September 2022, while CPI rose by 0.5% in September 2023, the same rate as in September 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 consistent annual inflation rates in August and September of 2023 were primarily the result of offsetting contributions from four different sectors. Significant decreases in the prices of food and non-alcoholic beverages, as well as furniture and household goods, were effectively balanced out by increases in the prices of transportation, and restaurants and hotels.
The most substantial downward influence on the monthly movement in both CPIH and CPI annual rates were attributed to food and non-alcoholic beverages, where prices fell by 0.1% between August and September, falling for the first time since September 2021, and Furniture and household goods, where prices rose by 0.1%, less than the 1.5% increase recorded a year ago. Notably, Restaurant and hotel prices rose by 0.9% between August and September 2023, while prices for motor fuel rose between August and September 2023 relative to a decline over the same period last year, thus offering the most significant upward contribution to the change in the annual rates.
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