July 19, 2023
According to England’s Office of National Statistics (ONS) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 7.3% as at June 2023, down from 7.9% in May. The Consumer Prices Index (CPI) rose by 7.9%, down from 8.7% in May. On a monthly basis, CPIH rose by 0.2% in June 2023 compared to an increase of 0.7% in June 2022, while CPI rose by 0.1% in June 2023, in comparison to a 0.8% rise in June 2022.
The ONS highlighted, “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 16% 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.”
The slight easing in the annual CPIH inflation rate in June 2023 was driven by downward contributions across five divisions, while two divisions experienced small upward trends to offset said easing. The largest downward contribution to the monthly change in both the CPIH and CPI annual rates resulted from transport, where motor fuel prices decreased between May and June 2023 by 2.7% but increased by 9.3% over the same period a year prior. Motor fuel prices fell, overall, by 22.7% in the year to June 2023, down from 13.1% in May. Also, there were also notable downward contributions from Food and non-alcoholic beverages, furniture and household goods, and restaurants and hotels.
Lower prices for motor fuel led to the largest downward contribution to the monthly change in CPIH and CPI annual rates, while prices for food rose in June 2023 but by less than in June 2022, also leading to an easing in the annual rates.
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