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Consumer Price Inflation Summary, June 2013

Released: 16 July 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 headline rate of inflation rose in June. The Consumer Prices Index (CPI) showed that prices grew by 2.9% in the year to June 2013, up from 2.7% in the year to May. The inflation rate is slightly above the figures seen over the previous 12 months but below the levels reached between the start of 2010 and spring 2012.

A rise in the price of motor fuels was the largest contributor to the rise in inflation. Average petrol prices rose by 1.0 pence a litre between May and June this year but they fell by 4.3 pence a litre between the same two months a year ago. Similarly diesel prices rose by 0.9 pence a litre this year but fell by 4.7 pence a year ago.

There was also a large upward contribution from clothing & footwear. Prices usually fall between May and June as the summer sales season begins but this year the overall fall was not as steep as in 2012 when there were reports of sales starting earlier than is usual. There were other, comparatively modest, upward contributions from miscellaneous goods & services (particularly personal care products) and housing, water, electricity, gas & other fuels.

The most notable, but relatively modest, downward contributions came from food & non-alcoholic drinks (particularly vegetables), recreation & culture (principally package holidays) and furniture, household equipment & maintenance.

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.

CPIH, the new measure of consumer price inflation including owner occupiers’ housing costs, grew by 2.7% in the year to June 2013, up from 2.5% in May. The slower growth in CPIH than CPI is due principally to owner occupiers’ housing costs increasing more slowly than overall inflation for other consumer goods and services in the year to June.

Source: Office for National Statistics

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