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.

Inflation Unchanged For The Fourth Month In A Row

CPI annual inflation grew at a rate of 2.7% in January 2013 unchanged again this month. It is the fourth month in a row, the longest period ever, that inflation has remained unchanged. The CPI was 124.4. It is still below the government's target of 2%. The RPI annual inflation was 245.8 or 3.3% in January up from 3.1% in December.

CPI Inflation Up 2.7%

The CPI annual inflation for November 2012 was 2.7%, the same as in October. The index sttod at 124.4 (2005=100). The index was unchanged over all but there were significant changes both upward and downward within the CPI between October and November.

The most significant upward pressure to annual inflation came from food and non-alcoholic beverages, mainly bread, cereals and vegetables and housing and household services mainly gas and electricity. The main downward pressure came from motor fuel and furniture, household equipment and maintenance.

The RPI annual inflation stands at 245.6 in November or 3%, down from 3.2% in October. Motoring expenditure, household and household goods provided the main downward pressure. The main upward pressure came from food.

The CPI measures the changes in the general level of prices for goods and services bought for household consumption. It can be seen as a shopping basket of many different goods and services bought by households. The CPI is the main measure of consumer price inflation for macro-economic purposes. It is used as the basis for the Government's target for inflation that the Bank of England has to achieve. It is also used for the indexation of benefits, tax credits and public service pensions. It is known internationally as the Harmonised Index of Consumer Prices (HICP). HICPs are calculated in each Member State of the European Union. They are used to compare inflation rates across the EU.

The RPI is the longest standing measure of inflation in the UK and historically was used in the indexation of various prices and incomes, the uprating of pensions, state benefits and index-linked gilts and the valorisation of excise duties. Since April 2011 the CPI has been used for some of the previous uses of the RPI as mentioned above.

Some of the main differences between the CPI and the RPI include the population base, item coverage, index methodology and item coding. The CPI population base includes all private and institutional households and foreign visitors. The RPI only includes private households and excludes the highest income households and pensioner households (c.13% of household expenditure). The CPI excludes certain items related to housing costs like mortgage interest payments, house depreciation and council tax that are included in the RPI. The RPI uses the arithmetic mean, the CPI uses the geometric mean. The CPI uses a standard internatikonal classification scheme and the RPI uses a system unique to itself.

Inflation Unchanged Under Pressure

The Consumer Prices Index (CPI) annual inflation remained unchanged at 2.7% (124.4) in November as compared with October 2012. The unchanged figure however does not show the significant upward pressures on the CPI from food and non-alcoholic beverages and housing and household services during the month. Downward pressures on the CPI came from motor fuels and furniture, household equipment and maintenance. The RPI inflation figure stands at 3% (245.6) down from 3.2% in October. Motoring expenditure, housing and household goods provided the main downward pressure offset slightly by upward pressure from food.

Inflation Down By 0.3%

Consumer price inflation fell by 0.3% from 2.5% in August to 2.3% in September 2012 according to a statistical bulletin from the ONS. It is the slowest rate of inflation since November 2009 (1.9%). The downward pressure on the CPI came from housing and household services with September's utilities price increases falling out of the CPI calculation. Significant upward pressure came from transport, recreation and culture. The index number for September is 123.5 compared with the 100 base index of 2005. RPI inflation stands at 2.6% down from the 2.9% of August.

Annual CPI Down To 2.8%

CPI annual inflation fell from 3% in April to 2.8% in May 2012 according to data from the ONS. It is the lowest annual rate since November 2009 (1.9%). The index is 122.8 in May 2012 based on 100 in 2005.

The downward pressures came from motor fuel and food and non-alcoholic beverages. Upward pressure came from air and sea transport.

RPI inflation in May stands at 3.1% from 3.5% in April. It is the lowest since December 2009. Downward pressure came from petrol and oil and food, upward pressure came from other travel costs (incl. air transport).

Inflation Stands At 3.4%

CPI inflation stands at 121.8 or a percentage change of 3.4% in February 2012 according to a statistical bulletin from the ONS. RPI inflation stands at 3.7%. The annual rate is the lowest since November 2010.

The biggest downward pressure on the CPI came from domestic electricity and gas, recreation and culture and transport. The biggest upward pressure came from alcohol off sales and vegetables.

On the monthly comparison the CPI rose by 0.6% between January and February 2012 compared with 0.7 a year ago. The biggest upward pressure on the monthly comparisdon came from clothing and footwear, food and non-alcoholic beverages, transport and furniture. The biggest downward pressure came from housing and household services.

Inflation Down To 4.2% In December

CPI annual inflation for Decmber 2011 stood at 4.2%, down from 4.8% in November. The biggest downward pressure came from petrol, gas and clothing. Upward pressure came mainly from landline and mobile telephone charges.

RPI stood at 4.8%, down from 5.2% in November. The main pressures on the RPI came from the same sectors as affected the CPI with upward pressure also coming from car insurance. Data from ONS.

Inflation Down to 4.8% In November

Inflation fell to 4.8% in November from the 5% figure of October. The index number is 121.2 (2005=100). RPI stands at 5.2%. Food, petrol, clothing and furniture household and equipment and maintenance provided the largest downward pressure. Domestic heating and off sales of alcohol provided upward pressure to the CPI. While upward pressure came from the same sectors as the CPI, downward pressure on the RPI came from wines and spirits off sales and fuel and light.

CPI Highest Ever

CPI annual inflation reached 5.2% in September 2011 up from 4.5% in August according to the ONS. It is the highest CPI inflation has ever been since records began in January 1997. It was also 5.2% in September 2008. RPI, an alternative measure of inflation reached 5.6%.

The biggest upward pressure came from increases in prices for energy products gas and electricity. Upward pressure also came from air transport and communications services. Clothing contributed the main downward pressure.

Housing and household services increased by 8.6% compared with 5.1% last month. Restaurants and hotels annual rate was 4.7% compared with 4.6% last month. It is the highest ever for the sector.

Inflation Down To 4.2%

The latest bulletin from the ONS on consumer inflation says that annual inflation has fallen to 4.2% in June 2011 from 4.5% in May. The government target is 2%. Recreaton and culture provided the main downward pressure for the decrease. In particular games, toys and hobbies were the main contributor along with pressure from audio visual equipment price discounting. Upward pressure came from a variety of food products.

The CPI fell by 0.1% between May and June 2011 due mainly to downward pressure from recreation and culture particularly computer games, photographic equipment, data processing equipment, recording equipment and books and also from clothing and footwear as some summer sales began in women's fashion. Upward pressure came from food and drink mainly bread and cereals, meat and milk, cheese and eggs. Mineral waters, soft drinks and juices helped to offset the increase. The RPI stands at 5% in June.

CPI At 4.5% In April

CPI annual inflation in April stands at 4.5% up from 4% in March. The most significant contributions to the increase were air transport, alcohol and tobacco and gas. Downward pressure came from petrol and diesel, miscellaneous goods and services, clothing and footwear and communication. The RPI index recorded an annual inflaton rate of 5.2% down from 5.3% in March.

Inflation Up To 4%

The latest inflation data from the ONS says that CPI annual inflation now stands at 4% from 3.7% in December. The government target for CPI is 2%. The main contributory factors were petrol and diesel prices, restaurants and cafes, furniture and furnishings, alcoholic beverages and vehicle purchases. Two important factors that also made an impact were the increase in VAT and the price of crude oil. Downward pressure on the CPI came from recreation and culture, banking services and clothing and footwear. The RPI increased from 4.8% in December to 5.1% in January 2011.

The all items CPI hasn't been higher since November 2008, non-alcoholic beverages, restaurants and hotels and petrol haven't been higher since records began.

CPI Unchanged At 3.1%

The consumer price index remained at 3.1% in August according to the ONS even though there were significant upward and downward pressures on the index.

Rising air fares (16.1%), clothing (2.8%) and food were the most important contributors to upward pressure while a fall in second-hand car prices and falling petrol and diesel prices contributed downward pressure.

The most important upward contributions to the change in the 12 month rate came from clothing and footwear, food and non-alcoholic beverages. Downwrad pressure contributing to the change came from transport and furniture, household equipment and maintenance.

The 12 month rate to August was affected by upward pressure from transport (1.2%), food and alcoholic beverages (0.5%) and restaurants and hotels (0.4%). Clothing and footwear contributed downward pressure.

The RPI all items index and the RPIX increased by 4.7% from 4.8% in July.

Budget 2010

The main budget announcements from the five-year plan set out by Chancellor of the Exchequer George Osborne yesterday set out actions to reduce the budget deficit, to introduce a 'fairer' tax system, encourage enterprise and support long-term growth in the economy. The Coalition Government's three core values of responsibility, freedom and fairness are the basis for the Budget intentions to help rebalance the economy and provide conditions for sustainable growth.

In order to reduce the deficit the Chancellor has set a fiscal mandate to achieve a current balance by the end of the five-year period 2015-16; a target for debt to ensure sustainable public finances; spending reductions of £31.9bn/year by 2014-15 and tax increases of £8.2bn; £29.8bn of savings from current expenditure and £2.2bn from gross public investment; increase in VAT to 20%; indurance Premium Tax to 6%; a two year pay freeze on public sector pay (except those on less than £21,000pa who will get an additional £250).

Conditions for enterprise and sustainable growth were also set out to make UK more competitive by reducing regulation and providing tax breaks. Corporation tax rates will be reduced from 28% to 24%; the small profits rate will be reduced from 21% to 20%; NICs holiday for new businesses in certain areas; an increase in the Enterprise Finance Guarantee and a new Enterprise Capital Fund; a Regional Growth Fund in 2011-12 and 2012-13 for increases in business employment and growth.

The deficit reduction burden will be shared, the Budget says, by refocusing the tax and benefit framework and 'protecting the most vulnerable in society'. The Government want to encourage people to take personal responsibility, work hard and save responsibly. The personal allowance for under 65s will be increased by £1,000 to £7475 in 2011-12 taking 880,000 out of income tax; capital gains tax increase from 18% to 28% for higher rates and an extension of the 10% rate for entrepreneurial activites from first £2m to first £5m of qualifying gains made over a lifetime; a council tax freeze; a levy on banks balance sheets from January 2011. The basic State Pension will be uprated by a triple guarantee of earnings or 2.5% whichever is highest, from April 2011; reduction in tax credits for those with household income over £40,000 from £50,000; reducing annual allowance of pension tax relief; indexing benefits to the CPI instead of the RPI to reflect more fairly benefits claimants experiences.

The Government added that the Budget measures will pay for the past and plan for the future. They represent a first step in the transformation of the economy, rebalancing growth and lead to sustainable, private sector led growth.

Inflation Up 3.7%

The CPI for May rose by less than in April but it is still far higher than the Government target of 2%. It rose by 3.7% in April. The index was 114.4. The RPI at 223.6 rose by 5.1% down from 3.7% last month. The RPIX (RPI excluding mortgage interest payments) rose to 222.8 or by 5.1%, down from 5.4% the previous month.

The main contributory sectors to the change in the CPI were food and non-alcoholic beverages chiefly meat and in particular pork and fruit particularly grapes. Vegetables also had a small downward effect. Transport also had a downward effect as did the purchase of new cars and road passenger transport. Alcoholic beverages and tobacco, recreation and culture both had large downward effects. Books had a small upward effect. Housing and household services provided the only large upward contribution.

The RPI experienced a large downward contribution from food, fruit particularly grapes and mayonnaise and meat. Motoring expenditure and the purchase of motor vehicles made downward effects. The price of alcohol rose but by less than a year ago. Small downward contributions came from leisure services in particular foreign holidays, tobacco prices rising by less than a year ago and from household services again prices rising by less than a year ago. A small upward contribution was made by household goods where there were price rises. Furniture, in particular, kitchen base units provided the upward effect partially offset by a downward effect from furnishings.

CPI Sharp Rise To 3.7%

The CPI rose from 3.4% in the year to March 2010 to 3.7% this month. It was 3% in February. The largest upward contribution came from clothing and footwear within which the largest effect was made by women's garments. Other significant contributions came from food and non-alcoholic beverages, in particular food but no one item within the food category, alcoholic beverages and tobacco (2.1%), miscellaneous goods and services (0.8%) and restaurants and hotels.

The RPI rose by 5.3% in the year to April up from 4.4% in the year to March 2010. Tne RPIX rose by 5.4% from 4.8% in March.

An Increase of 3.4% In The CPI

The CPI for March 2010 went up by 3.4% from 3% in February and the RPI by 4.4% from 3.7%. The CPI indicator in March was 113.5 from 112.9. The RPIX went up from 4.2% in February to 4.8% in March.

Housing and household services made the most difference to the annual CPI with an increase this year after a fall last year. The main difference was made by domestic gas because average bills were unchanged this year between February and March but fell last year. Transport also made a large contribution from fuels and lubricants, increasing by 2.7% between February and March, and air fares on European and long-haul flights. Falling prices for second-hand cars partially offset these upward effects. Other large upward contributions came from food and clothing. The only large downward contribution came from furniture and furnishings.