Inflation Up By 1.1%

The consumer prices index (CPI) increased by 1.1% in the year to September 2009, from 1.6% in August. The retail prices index (RPI) fell by 1.4% in September, from 1.3% in August. The RPI excluding mortgages (RPIX), increased by 1.3% from 1.4% in August.

The largest contributor to the downward trend in the CPI was from housing and household services. Other large downward contributions came from food and non-alcoholic beverages where falling meat prices had the biggest effect. A small contribution came from fruit especially bananas. Restaurants and hotels prices changed little or nothing from a year ago. The downward effect came from restaurants and cafes where hotel accomodation prices have fallen this year. Another large downward effect came from recording media, particularly pre-recorded DVDs and games, toys and hobbies.

The upward effects in the CPI came from transport where the prices of fuels and lubricants increased between August and September. The price of petrol went up on average by 2.4%/litre this year to 106.2 pence. Diesel prices went up 2.5p/litre compared with a fall of 2.3p/litre last year. Another large upward contribution from within the transport sector came from the purchase of second-hand cars. Prices have gone up this year but fell last year. There was also a large upward contribution from clothing and footwear.

Fuel and light made the largest contributio to the downward trend in the RPI. Food also contributed to the trend with prices falling this year more than they did last year mainly due to non-seasonal food products. Motoring goods accounted for the main upward contribution. The purchase of motor vehicles and fuel were largely responsible and clothing and footwear. A smaller contribution was made by household goods particularly furniture.