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Slight fall in inflation in July 2013

Released: 13 August 2013 Download PDF

CPI Percentage change over 10 years

United Kingdom

CPI Percentage change over 10 years
Source: Office for National Statistics

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The rate of inflation faced by households fell slightly in July 2013. The Consumer Prices Index (CPI) – the headline measure of inflation grew by 2.8% in the year ending July 2013, down from 2.9% in June. Other measures of consumer inflation also showed a slow-down. CPIH, the new measure of consumer price inflation including the costs owner occupiers’ face in owning, maintaining and living in their own homes, grew by 2.5%, down from 2.7%. RPIJ, the improved variant of the Retail Prices Index (RPI) calculated using formulae that meet international standards, grew by 2.6% down from 2.7%. The RPI (which is no longer a National Statistic) grew by 3.1% down from 3.3%.

The contributions to the fall came primarily from three areas; air fares (particularly for long-haul flights), and price movements in the recreation & culture, and clothing & footwear sectors. A return to more regular sales patterns after last summer’s poor weather-influenced early sales may have played a part in slowing the growth in inflation. A rise in petrol and diesel prices partially offset the contributions to the fall.

Taking a longer term view, the three main contributors to the 12-month inflation rate in the last five years have been food & non-alcoholic beverages; housing, water, electricity, gas & other fuels; and transport (including motor fuels). Combined, these three sectors have, on average, accounted for over half of the 12-month inflation rate each month.

Source: Office for National Statistics

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