The headline rate of inflation remained unchanged for an unprecedented fourth month in a row. The Consumer Prices Index (CPI) showed that prices grew by 2.7% in the year ending January 2013, this is the same annual rate as was seen the previous three months and continues the trend of, broadly, flat inflation that has been seen since Spring 2012.
In some months, an unchanged headline rate can mask some large upward and downward pressures on inflation. This wasn’t the case this month where there were only some fairly modest movements. Alcohol & air fares provided the biggest upward pushes on inflation, with (in the case of the former) prices rising following sales over the Christmas period. Miscellaneous goods and services and clothing prices provided the biggest downward pushes.
Looking ahead, a new measure of consumer price inflation (which will initially be known as CPIH) including owner occupiers’ housing costs will be launched in March 2013. Additionally, a new Retail Prices Index -based index using a geometric formulation (known as the Jevons formula) will also be launched in March. This index will be known as RPIJ.
Source: Office for National Statistics
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