June 21, 2023
According to England’s Office of National Statistics (ONS) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 7.9% as at May 2023, up from 7.8% in April. The Consumer Prices Index (CPI) rose by 8.7%, unchanged from April. On a monthly basis, CPIH rose by 0.6% in May 2023 compared to an increase of 0.6% in May 2022, while CPI rose by 0.7% in May 2023, in comparison to a 0.7% rise in May 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 increase in the annual CPIH inflation rate in May 2023 broadly reflected offsetting contributions across the different product groups. The largest upward contributions to the monthly change in both the CPIH and CPI annual rates resulted from rising prices for air travel, recreational and cultural goods and services, and second-hand cars. Prices for recreational and cultural goods and services rose, overall, by 6.8% in the year to May 2023, up from 6.4% in April, and the highest rate since August 1991.
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 and non-alcoholic beverages rose in May 2023 but by less than in May 2022, also leading to an easing in the annual rates.
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