Annual CPI Inflation At 1.6%

CPI inflation increased by 1.6% in the year to March 2014. It was 1.7% in February. Between February and March 2014 the CPI rose by 0.2% compared with 0.3% between the same two months of last year. Downward pressure mainly came from transport, especially motor fuels but also from clothing and furniture and household goods.

Transport prices didn't change much between February and March 2014 compared with the 0.6% increase a year earlier. Petrol prices were unchanged compared with a 2.2% rise last year. Diesel fell by 0.4p/litre compared with a rise of 1.9p/litre last year. Air transport fares grew by less than they did a year ago.

As usual, prices for clothing and footwear increased between February and March but by less than last year. Downward pressure mainly came from women's outer garments. Furniture and household goods prices went up by 0.3% over the month compared to a rise of 0.8% last year.

The main upward contribution came from restaurants and hotels where prices increased by 0.5% compared with 0.2% last year mainly from price increases for overnight stays in hotels. Prices for alcohol, particularly spirits, and tobacco rose this year but fell last year.

CPIH which includes owner occupier housing costs (OOH) grew by 1.5% in the year to March 2014. RPIJ grew by 1.8% from 2% in February. RPI annual inflation was 2.5%.

Inflation Rate 2.2% Down From 2.7%

The recent ONS statistical release on consumer inflation suggests that the CPI grew by 2.2% in the year to October 2013 down from 2.7% in September, but still above the Government's target of 2%. The main contributions to the fall in the rate came from transport and education. The CPIH and RPIJ likewise moved in a similar direction with rates of 2% from 2.5% and 1.9% from 2.5% respectively.

CPI Inflation Up To 2.8%

The CPI measure of inflation rose to 2.8% over the year to February 2013 following 4 consecutive months at 2.7%. The largest upward drives came from increases in energy prices and prices of some recreational goods, petrol and air travel. Downward pressure came from small price increases for food and soft drinks and a fall in the price of alcohol compared with the price rises of last year. It follows 4 years of widely fluctuating inflations rates.

The figures mean that a basket of goods that cost £100 in February 2012 would cost £102.80 in February 2013.

The new measure of consumer price inflation, CPIH including owner occupiers’ housing costs, has been launched. The CPIH annual rate is 2.6% in the year to February 2013, up from 2.5% in January.

Additionally, a new Retail Prices Index-based index using a geometric formulation (known as the Jevons formula) has also been launched. The 12-month rate for this index, known as RPIJ, stands at 2.6% in February compared with 2.7% in January.