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Consumer Price Inflation Detailed Briefing Note, June 2014 This product is designated as National Statistics

Released: 15 July 2014 Download PDF

Summary

Consumer Prices Index (CPI)

The CPI is a measure of consumer price inflation produced to international standards and in line with European regulations. First published in 1997 as the Harmonised Index of Consumer Prices (HICP), the CPI is the inflation measure used in the Government’s target for inflation.

The CPI is also used for purposes such as up-rating pensions, wages and benefits and can aid in the understanding of inflation on family budgets. For more information on the uses of the CPI see the article Users and uses of consumer price inflation statistics.

  • The all items CPI is 128.3, up from 128.0 in May.

  • The all items CPI annual rate is 1.9%, up from 1.5% in May.

  • The annual rate for CPI excluding indirect taxes, CPIY, is 1.9%, up from 1.5% last month.

  • The annual rate for CPI at constant tax rates, CPI-CT, is 1.8%, up from 1.4% last month.

  • The CPI all goods index is 122.1, up from 122.0 in May.

  • The CPI all goods index annual rate is 1.4%, up from 0.9% last month.

  • The CPI all services index is 136.0, up from 135.6 in May.

  • The CPI all services index annual rate is 2.5%, up from 2.2% last month.

CPIH

CPIH is a measure of UK consumer price inflation that includes owner occupiers’ housing costs (OOH). These are the costs of housing services associated with owning, maintaining and living in one’s own home. OOH does not include costs such as utility bills, minor repairs and maintenance which are already included in the index. CPIH uses an approach called rental equivalence to measure OOH. Rental equivalence uses the rent paid for an equivalent house as a proxy for the costs faced by an owner occupier. In other words this answers the question “how much would I have to pay in rent to live in a home like mine?” for an owner occupier. OOH does not seek to capture increases in house prices. Although this may be inconsistent with some users’ expectations of measures of OOH, the inclusion of an asset price and therefore capital gains would make the index less suitable for a measure of consumption. OOH currently accounts for just over 15% of the expenditure weight of CPIH. This has increased notably from a weight of 10% in 2005.

Currently, the method of calculation, the population coverage and the basket of goods and services are the same as the Consumer Prices Index (CPI), with the exception of OOH. The method of deriving the weights for CPIH and the data used for these are also the same as for CPI, with the exception of OOH. This can result in some differences from the CPI.

  • The all items CPIH is 126.0, up from 125.8 in May.

  • The all items CPIH annual rate is 1.8%, up from 1.4% in May.

  • The annual rate for CPIH excluding indirect taxes, CPIHY, is 1.8%, up from 1.4% last month.

  • The OOH component of CPIH is 108.4, up from 108.3 in May.

  • The OOH component annual rate is 0.9%, unchanged from last month.

  • The CPIH all goods index is 122.2, unchanged from last month.

  • The CPIH all goods index annual rate is 1.4%, up from 0.9% last month.

  • The CPIH all services index is 129.6, up from 129.2 in May.

  • The CPIH all services index annual rate is 2.1%, up from 1.8% last month.

Retail Prices Index (RPI) and RPIJ

In accordance with the Statistics and Registration Service Act 2007, the Retail Prices Index and its derivatives have been assessed against the Code of Practice for Official Statistics and found not to meet the required standard for designation as National Statistics. The full assessment report can be found on the UK Statistics Authority website.

The RPI is a long-standing measure of UK inflation that has historically been used for a wide range of purposes such as the indexation of pensions, rents and index-linked gilts. For further information on current and historic uses of the RPI please see the article Users and uses of consumer price inflation statistics.

RPIJ is an improved variant of the Retail Prices Index which is calculated using formulae that meet international standards. The rationale for creating RPIJ was to give users a better alternative to the RPI if their needs were for a measure of inflation based on the same population, classifications, weights etc as the RPI. Currently, RPIJ also acts as an analytical series, in that it allows users to see the impact of using the Jevons (which meets international standards) in place of the Carli formula (which does not meet international standards) in the RPI. The use of the different formulae at the elementary aggregate level is currently the only difference between the two indices. ONS does not produce detailed goods and services indices for RPIJ.

  • The all items RPI is 256.3, up from 255.9 in May.

  • The all items RPI annual rate is 2.6%, up from 2.4% last month.

  • The all items RPIJ is 237.8, up from 237.5 in May.

  • The all items RPIJ annual rate is 2.0%, up from 1.7% last month.

  • The annual rate for RPIX, the all items RPI excluding mortgage interest payments (MIPs) index, is 2.7%, up from 2.5% last month.

  • The all goods RPI is 201.0, up from 200.8 in May.

  • The all goods RPI annual rate is 2.2%, up from 1.8% last month.

  • The all services RPI is 343.1, up from 342.6 in May.

  • The all services RPI annual rate is 2.8%, up from 2.7% last month.

  • The annual rate for RPIY, the all items RPI excluding MIPs and indirect taxes index, is 3.0%, up from 2.6% last month.

  • The Tax and Price Index (TPI) for June is 224.8, up from 224.4 in May.

  • The TPI annual rate is 2.2%, up from 1.9% last month.

CPI Summary

Contributions to change in the CPI annual rate

CPI COICOP DIVISIONS     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
01: Food and non-alcoholic beverages 106 112 -0.5 0.1 0.07
02: Alcoholic beverages and tobacco 44 45 -0.3 - 0.02
03: Clothing and footwear 68 72 -1.9 0.6 0.18
04: Housing, water, electricity, gas and other fuels 137 129 0.1 0.1 -
05: Furniture, household equipment and maintenance 59 60 -0.5 0.2 0.04
06: Health 25 24 - 0.1 -
07: Transport 148 152 0.1 0.6 0.07
08: Communication 31 32 - -0.1 -
09: Recreation and culture 141 144 -0.2 - 0.02
10: Education 21 22 - - -
11: Restaurants and hotels 117 120 0.1 0.4 0.03
12: Miscellaneous goods and services 103 88 0.2 -0.1 -0.03

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Large upward effects came from:

  • Clothing and footwear, where prices overall rose by 0.6% between May and June this year compared with a fall of 1.9% a year ago. Prices usually fall between May and June as the summer sales begin but this year the average prices of a number of products have risen. The main upward effect came from garments, particularly women’s outerwear where there were upward contributions from nearly all items, the largest from trousers and skirts;

  • Food and non-alcoholic beverages, where prices overall rose between May and June this year but fell between the same two months a year ago. The upward effect came principally from vegetables, bread & cereals, sugar, jam, syrups, chocolate & confectionery and mineral waters, soft drinks & juices;

  • Transport, where prices overall rose by 0.6% between May and June 2014, compared with a rise of 0.1% between the same two months a year earlier. The largest upward contribution came from air transport, with average fares rising this year but falling in 2013, particularly on European routes. There was also a smaller upward effect from sea transport. Partially offsetting these movements was a small downward contribution from motor fuels with prices, overall, rising this year by less than a year ago; and

  • Furniture, household equipment and maintenance, where prices overall rose by 0.2% between May and June this year but fell by 0.5% a year ago. The main upward effect came from furniture & furnishings where prices rose by more than a year ago.

Small upward effects came from:

  • Restaurants and hotels, where prices overall rose by 0.4% between May and June 2014 compared with a smaller rise of 0.1% between the same two months a year earlier;

  • Recreation and culture, where prices overall were little changed between May and June this year but fell by 0.2% a year ago; and

  • Alcoholic beverages and tobacco, where prices overall were little changed between May and June this year but fell by 0.3% a year ago.

A small downward effect came from:

  • Miscellaneous goods and services, where prices overall fell by 0.1% between May and June this year but rose by 0.2% a year ago. This came principally from appliances & products for personal care where there were price reductions on products such as perfume this year.

CPI Notable Movements

CPI notable movements, June 2014

All items CPI Annual rate +1.9%, up from +1.5% last month
  Also +1.9% in January 2014
  Last higher in December 2013 (+2.0%)
All items CPI exc energy, food,  Annual rate +2.0%, up from +1.6% last month
alcohol and tobacco Also +2.0% in April 2014
  Last higher in September 2013 (+2.2%)
Furniture, household equipment and  Annual rate +1.6%, up from +0.9% last month
maintenance Also +1.6% in February 2014
  Last higher in October 2012 (+1.7%)
Communication Annual rate +0.9%, down from +1.0% last month
  Lowest since June 2009 (+0.7%)
Recreation and culture Annual rate +1.3%, up from +1.1% last month
  Also +1.3% in June 2013
  Last higher in May 2013 (+1.6%)
Miscellaneous goods and services Annual rate 0.0%, down from +0.3% last month
  Never lower since official series began in January 1997
All goods Annual rate +1.4%, up from +0.9% last month
  Also +1.4% in January 2014
  Last higher in December 2013 (+1.7%)
All services Annual rate +2.5%, up from +2.2% last month
  Highest since April 2014 (+2.8%)

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CPI Detailed Briefing

  • Weights are specified as parts per 1000 in the CPI.

01 Food & non-alcoholic beverages

      Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
01 Food & non-alcoholic beverages 106 112 -0.5 0.1 0.07

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  • Large upward effect on the all items 12-month rate change.

  • Due to food and, to a lesser extent, non-alcoholic beverages.

01.1 Food

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
01.1 Food 93 99 -0.5 - 0.05
01.1.1 Bread and cereals 16 17 -0.4 1.2 0.03
01.1.2 Meat 21 22 0.7 0.1 -0.01
01.1.3 Fish 4 4 0.3 -1.8 -0.01
01.1.4 Milk, cheese and eggs 13 14 -0.4 - 0.01
01.1.5 Oils and fats 2 2 1.0 1.2 -
01.1.6 Fruit 9 10 -1.9 -1.8 -
01.1.7 Vegetables including potatoes 14 15 -1.7 0.7 0.04
01.1.8 Sugar, jam, syrups, chocolate and confectionery 11 12 -1.9 - 0.02
01.1.9 Food products not elsewhere covered 3 3 2.1 -1.6 -0.01

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  • Large upward effect on the all items 12-month rate change.

  • Due to vegetables including potatoes; and, to a lesser extent, bread and cereals; sugar, jam, syrups, chocolate and confectionery; and milk, cheese and eggs.

  • Partially offset by meat, food products not elsewhere covered and fish.

Bread and cereals

  • Small upward effect. 

  • Prices overall rose this year but fell a year ago, with the main upward contributions coming from frozen pizzas and breakfast cereals.

  • Partially offset by a downward contribution coming from garlic bread, where prices fell this year but rose a year ago.

Meat

  • Small downward effect.

  • Prices overall rose this year by less than a year ago, with the main downward contributions coming from beef and poultry products.

  • Partially offset by a small upward contribution from lamb products, where prices rose this year but fell a year ago.

Fish

  • Small downward effect.

  • Prices overall fell this year but rose a year ago, particularly for salmon fillets.

  • Last year, cold weather in Norway caused salmon growth rates to slow down, reducing production and causing prices to increase. (The Grocer 8 June 2013)

Milk, cheese and eggs

  • Small upward effect.

  • Prices overall were little changed this year but fell a year ago, with the main upward contribution coming from yoghurt/fromage frais.

Vegetables including potatoes

  • Large upward effect.

  • Due to iceberg lettuces, premium potato crisps and fresh tomatoes.

  • Iceberg lettuces
    • Small upward effect.
    • Prices overall fell this year by less than a year ago. Last year, prices decreased from the high levels of May 2013 when cold weather was delaying the British harvest and Spanish supply was also reduced. (The Grocer 11 May 2013)

  • Premium potato crisps
    • Small upward effect.
    • Prices overall rose this year but fell a year ago.

  • Fresh tomatoes
    • Small upward effect.
    • Prices overall rose this year but fell a year ago.

Sugar, jam, syrups, chocolate and confectionery

  • Small upward effect.

  • Prices overall were little changed this year but fell a year ago, with the main upward contributions coming from bags of non-chocolate sweets and chocolate covered ice cream bars.

Food products not elsewhere covered

  • Small downward effect.

  • Prices overall fell this year but rose a year ago, particularly for mayonnaise.

01.2 Non-alcoholic beverages

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
01.2 Non-alcoholic beverages 13 13 -0.7 0.8 0.02
01.2.1 Coffee, tea and cocoa 3 3 -0.7 -1.3 -
01.2.2 Mineral waters, soft drinks and juices 10 10 -0.6 1.4 0.02

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  • Small upward effect on the all items 12-month rate change.

  • Due to mineral waters, soft drinks and juices, where prices overall rose this year but fell a year ago, with the main upward contributions coming from packs of fruit drink bottles, orange juice, fruit smoothies and fruit squash.

02 Alcoholic beverages and tobacco

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
02 Alcoholic beverages and tobacco 44 45 -0.3 - 0.02

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  • Small upward effect on the all items 12-month rate change.

  • Due to both tobacco and alcoholic beverages.

02.1 Alcoholic beverages

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
02.1 Alcoholic beverages 20 20 -0.7 -0.3 0.01
02.1.1 Spirits 6 6 -0.2 2.0 0.01
02.1.2 Wine 9 9 -1.5 -1.4 -
02.1.3 Beer 5 5 -0.1 -1.1 -0.01

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  • Small upward effect on the all items 12-month rate change.

  • Due to spirits.

  • Partially offset by beer.

Spirits

  • Small upward effect.

  • Prices overall rose this year but fell a year ago, with the main upward contributions coming from whisky and rum.

Beer

  • Small downward effect.

  • Prices overall fell this year by more than a year ago, with the main downward contribution coming from bottled lager, due to sales promotions related to the World Cup football tournament. (The Grocer 28 June 2014)

02.2 Tobacco

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
02.2 Tobacco 24 25 - 0.3 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall rose this year but were little changed a year ago.

03 Clothing and footwear

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
03 Clothing and footwear 68 72 -1.9 0.6 0.18

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  • Largest upward effect on the all items 12-month rate change.

  • Due to clothing and, to a lesser extent, footwear including repairs.

03.1 Clothing

  Weight 2013   Weight 2014   1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
03.1 Clothing 59 62 -2.1 0.6 0.17
03.1.2 Garments 54 55 -2.3 0.7 0.17
03.1.3 Other clothing and clothing accessories 4 6 -0.6 -0.6 -
03.1.4 Cleaning, repair and hire of clothing 1 1 - 0.1 -

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  • Large upward effect on the all items 12-month rate change.

  • Due to garments, where prices overall rose this year but fell a year ago, with the main upward contributions coming from men's casual coats/jackets, girls' fashion tops and a wide variety of women's outerwear items. Partially offset by a small downward contribution coming from women's sports tops, where prices overall fell this year but rose a year ago.

03.2 Footwear including repairs

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
03.2 Footwear including repairs 9 10 -0.3 0.4 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall rose this year but fell a year ago.

04 Housing, water, electricity, gas and other fuels

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
04 Housing, water, electricity, gas and other fuels 137 129 0.1 0.1 -

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  • Negligible overall effect on the all items 12-month rate change.

  • There is a small downward contribution coming from regular maintenance and repair of the dwelling.

  • Offset by a small upward contribution coming from actual rentals for housing.

04.1 Actual rentals for housing

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
04.1 Actual rentals for housing 62 70 - 0.1 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Average charges rose this year but were little changed a year ago, with the main upward contribution coming from UK self catering holidays.

04.3 Regular maintenance and repair of the dwelling

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
04.3 Regular maintenance and repair of the dwelling 16 2 0.6 0.2 -0.01
04.3.1 Materials for maintenance and repair 9 1 1.2 0.3 -0.01
04.3.2 Services for maintenance and repair 7 1 -0.2 0.1 -

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  • Small downward effect on the all items 12-month rate change.

  • Due to materials for maintenance and repair, where prices overall rose this year by less than a year ago, with the main downward contribution coming from softwood.

04.4 Other services related to the dwelling

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
04.4 Other services related to the dwelling 11 12 - - -
04.4.1 Water supply 6 6 - - -
04.4.3 Sewerage collection 5 6 - - -

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  • Negligible overall effect on the all items 12-month rate change.

04.5 Electricity, gas and other fuels

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
04.5 Electricity, gas and other fuels 48 45 - - -
04.5.1 Electricity 19 21 - - -
04.5.2 Gas 26 21 - - -
04.5.3 Liquid fuels 2 2 -0.3 -0.7 -
04.5.4 Solid fuels 1 1 - -0.2 -

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  • Negligible overall effect on the all items 12-month rate change.

05 Furniture, household equipment and maintenance

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05 Furniture, household equipment and maintenance 59 60 -0.5 0.2 0.04

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  • Large upward effect on the all items 12-month rate change.

  • Due to furniture, furnishings and carpets; household appliances, fitting and repairs; household textiles; and glassware, tableware and household utensils.

05.1 Furniture, furnishings and carpets

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05.1 Furniture, furnishings and carpets 20 21 -0.4 1.0 0.03
05.1.1 Furniture and furnishings 16 16 0.3 1.5 0.02
05.1.2 Carpets and other floor coverings 4 5 -3.0 -0.8 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Due to furniture and furnishings; and carpets and other floor coverings.

Furniture and furnishings

  • Small upward effect.

  • Prices overall rose this year by more than a year ago, with the main upward contribution coming from lounge furniture, in particular leather settees.

Carpets and other floor coverings

  • Small upward effect.

  • Prices overall fell this year by less than a year ago, particularly for tufted carpets.

05.2 Household textiles

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05.2 Household textiles 8 7 -0.5 0.1 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall rose this year but fell a year ago.

  • Partially offset by a small downward contribution coming from curtains, where prices overall fell this year by more than a year ago.

05.3 Household appliances, fitting and repairs

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05.3 Household appliances, fitting and repairs 9 9 -2.2 -1.5 0.01
05.3.1/2 Major appliances and small electric goods 8 8 -2.4 -1.7 0.01
05.3.3 Repair of household appliances 1 1 0.1 - -

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  • Small upward effect on the all items 12-month rate change.

  • Due to major appliances and small electric goods, where prices overall fell this year by less than a year ago, with the main upward contributions coming from washing machines and fridge freezers. Partially offset by a downward contribution coming from electric cookers, where prices overall fell this year but rose a year ago.

05.4 Glassware, tableware and household utensils

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05.4 Glassware, tableware and household utensils 5 6 0.1 0.8 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall rose this year by more than a year ago.

05.5 Tools and equipment for house and garden

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05.5 Tools and equipment for house and garden 4 4 1.2 0.4 -

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  • Negligible overall effect on the all items 12-month rate change.

05.6 Goods and services for routine maintenance

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
05.6 Goods and services for routine maintenance 13 13 -0.2 -0.1 -
05.6.1 Non-durable household goods 5 5 -1.0 -1.2 -
05.6.2 Domestic services and household services 8 8 0.3 0.6 -

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  • Negligible overall effect on the all items 12-month rate change.

06 Health

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
06 Health 25 24 - 0.1 -

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  • Negligible overall effect on the all items 12-month rate change.

06.1 Medical products, appliances and equipment

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
06.1 Medical products, appliances and equipment 10 10 -0.3 -0.1 -
06.1.1 Pharmaceutical products 6 6 -0.8 -0.1 -
06.1.2/3 Other medical and therapeutic equipment 4 4 0.5 -0.1 -

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  • Negligible overall effect on the all items 12-month rate change.

06.2 Out-patient services

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
06.2 Out-patient services 6 6 0.1 0.1 -
06.2.1/3 Medical and paramedical services 3 3 - 0.2 -
06.2.2 Dental services 3 3 0.1 - -

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  • Negligible overall effect on the all items 12-month rate change.  

06.3 Hospital services

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
06.3 Hospital Services 9 8 0.2 0.2 -

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  • Negligible overall effect on the all items 12-month rate change.

07 Transport

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
07 Transport 148 152 0.1 0.6 0.07

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  • Large upward effect on the all items 12-month rate change.

  • Due to transport services.

  • Partially offset by operation of personal transport equipment; and purchase of vehicles.

07.1 Purchase of vehicles

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
07.1 Purchase of vehicles 38 44 -0.2 -0.3 -0.01
07.1.1A New cars 21 23 0.1 - -
07.1.1B Second-hand cars 14 18 -0.7 -1.1 -0.01
07.1.2/3 Motorcycles and bicycles 3 3 -0.7 2.0 0.01

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  • Small downward effect on the all items 12-month rate change.

  • Due to second-hand cars.

  • Partially offset by motorcycles and bicycles.

Second-hand cars

  • Small downward effect.

  • Prices overall fell this year by more than a year ago.

Motorcycles and bicycles

  • Small upward effect.

  • Prices overall rose this year but fell a year ago, particularly for adult bicycles.

07.2 Operation of personal transport equipment

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
07.2 Operation of personal transport equipment 81 76 0.5 0.2 -0.03
07.2.1 Spare parts and accessories 5 5 -0.1 -0.2 -
07.2.2 Fuels and lubricants 40 35 0.7 0.2 -0.02
07.2.3 Maintenance and repairs 22 23 0.2 0.3 -
07.2.4 Other services 14 13 0.5 - -0.01

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  • Small downward effect on the all items 12-month rate change.

  • Due to fuels and lubricants; and other services.

Fuels and lubricants

  • Small downward effect.

  • The average price of petrol across the month, as recorded for the CPI, rose by 0.6 pence per litre between May and June 2014 to stand at 130.0 pence per litre.

  • Last year, the average price of petrol rose by 1.0 pence per litre between May and June 2013 to stand at 134.3 pence per litre.

  • The average price of diesel fell by 0.4 pence per litre between May and June 2014 to stand at 135.9 pence per litre, compared with a rise of 0.9 pence a year earlier to stand at 139.4 pence per litre.

Other services

  • Small downward effect.

  • Prices overall were little changed this year but rose a year ago, with the main downward contribution coming from charges for self-drive car hire.

07.3 Transport services

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
07.3 Transport services 29 32 -0.4 2.5 0.10
07.3.1 Passenger transport by railway 9 11 0.4 0.7 -
07.3.2 Passenger transport by road 13 11 0.4 0.4 -
07.3.3 Passenger transport by air 6 6 -2.8 7.0 0.07
07.3.4 Passenger transport by sea and inland waterway 1 4 -0.1 5.2 0.02

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  • Large upward effect on the all items 12-month rate change.

  • Due to passenger transport by air; and, to a lesser extent, passenger transport by sea and inland waterway.

Passenger transport by air

  • Large upward effect.

  • Average air fares rose this year but fell a year ago, with the main upward contribution coming from European flights.

  • Partially offset by a small downward contribution coming from domestic flights.

Passenger transport by sea and inland waterway

  • Small upward effect.

  • Prices overall rose this year but fell a year ago, with the main upward contribution coming from international routes.

08 Communication

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
08 Communication 31 32 - -0.1 -

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  • Negligible overall effect on the all items 12-month rate change.

08.1 Postal services

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
08.1 Postal services 2 2 - - -

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  • Negligible overall effect on the all items 12-month rate change.

08.2/3 Telephone equipment and services

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
08.2/3 Telephone equipment and services 29 30 - -0.1 -

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  • Negligible overall effect on the all items 12-month rate change.

09 Recreation and culture

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09 Recreation and culture 141 144 -0.2 - 0.02

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  • Small upward effect on the all items 12-month rate change.

  • Due to package holidays; audio-visual equipment and related products; and books, newspapers and stationery.

  • Partially offset by other recreational items, gardens and pets.

09.1 Audio-visual equipment and related products

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09.1 Audio-visual equipment and related products 23 22 -0.5 0.2 0.02
09.1.1 Equipment for the reception and reproduction of sound and pictures 6 5 -0.1 -1.0 -
09.1.2 Photographic, cinematographic and optical equipment 3 3 3.2 4.5 -
09.1.3 Data processing equipment 7 8 -1.8 -1.4 -
09.1.4 Recording media 6 5 -1.6 1.4 0.02
09.1.5 Repair of audio-visual equipment and related products 1 1 0.3 -0.4 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to recording media, where prices overall rose this year but fell a year ago, with the main upward contribution coming from DVDs. Partially offset by a small downward contribution coming from CD-ROMs, where prices fell this year but rose a year ago.

09.2 Other major durables for recreation and culture

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09.2.1/2 Major durables for in/outdoor recreation 9 9 0.1 - -

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  • Negligible overall effect on the all items 12-month rate change.

09.3 Other recreational items, gardens and pets

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09.3 Other recreational items, gardens and pets 32 36 -0.2 -1.0 -0.03
09.3.1 Games, toys and hobbies 19 21 -0.3 -1.8 -0.03
09.3.2 Equipment for sport and open-air recreation 3 3 -0.3 0.2 -
09.3.3 Gardens, plants and flowers 4 4 0.5 -0.3 -
09.3.4/5 Pets, related products and services 6 8 -0.4 - -

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  • Small downward effect on the all items 12-month rate change.

  • Due to games, toys and hobbies, where prices overall fell this year by more than a year ago, with the main downward contributions coming from computer games, construction toys and baby dolls.

09.4 Recreational and cultural services

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09.4 Recreational and cultural services 29 31 0.3 0.4 -
09.4.1 Recreational and sporting services 9 9 0.2 0.1 -
09.4.2 Cultural services 20 22 0.4 0.5 0.01

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  • Negligible overall effect on the all items 12-month rate change.

  • There is a small upward contribution coming from cultural services, where prices overall rose this year by more than a year ago, with the main upward contribution coming from nightclub entry fees.

09.5 Books, newspapers and stationery

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09.5 Books, newspapers and stationery 14 14 0.1 1.0 0.01
09.5.1 Books 4 4 -0.4 1.4 0.01
09.5.2 Newspapers and periodicals 5 5 -0.2 0.9 0.01
09.5.3/4 Misc. printed matter, stationery, drawing materials 5 5 0.7 0.8 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to books and newspapers and periodicals, where prices overall rose this year but fell a year ago, particularly for non-fiction hardback books and periodicals.

09.6 Package holidays

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
09.6 Package holidays 34 32 -0.4 0.1 0.02

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall rose this year but fell a year ago, with the main upward contributions coming from foreign holidays.

10 Education

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
10 Education 21 22 - - -

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  • Negligible overall effect on the all items 12-month rate change.

11 Restaurants and hotels

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
11 Restaurants and hotels 117 120 0.1 0.4 0.03

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  • Small upward effect on the all items 12-month rate change.

  • Due to accommodation services and catering services.

11.1 Catering services

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
11.1 Catering services 98 100 0.1 0.2 0.01
11.1.1 Restaurants and cafes 88 91 0.2 0.3 0.01
11.1.2 Canteens 10 9 -0.2 0.1 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to restaurants and cafes, where prices overall rose this year by more than a year ago, with the main upward contribution coming from alcoholic drinks.

11.2 Accommodation services

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
11.2 Accommodation services 19 20 0.1 1.1 0.02

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall rose this year by more than a year ago, particularly for hotel overnight stays.

12 Miscellaneous goods and services

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12 Misc. goods and services 103 88 0.2 -0.1 -0.03

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  • Largest downward effect on the all items 12-month rate change.

  • Due to personal care and financial services not elsewhere covered.

12.1 Personal care

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12.1 Personal care 28 29 0.2 -0.4 -0.02
12.1.1 Hairdressing and personal grooming establishments 7 7 0.2 0.2 -
12.1.2/3 Appliances and products for personal care 21 22 0.2 -0.6 -0.02

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  • Small downward effect on the all items 12-month rate change.

  • Due to appliances and products for personal care, where prices overall fell this year but rose a year ago, with the main downward contributions coming from perfume/eau de toilette, tissues, toilet rolls, baby wipes and moisturiser/day cream. Partially offset by small upward contributions from electrical hair styling appliances, disposable nappies and toothbrushes, where prices overall rose this year but fell a year ago.

12.3 Personal effects not elsewhere covered

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12.3 Personal effects not elsewhere covered 13 13 0.4 0.6 -
12.3.1 Jewellery, clocks and watches 8 8 -0.2 0.1 -
12.3.2 Other personal effects 5 5 1.2 1.4 -

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  • Negligible overall effect on the all items 12-month rate change.

12.4 Social protection

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12.4 Social protection 14 12 0.2 0.4 -

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  • Negligible overall effect on the all items 12-month rate change.

12.5 Insurance

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12.5 Insurance 8 7 -0.2 -0.8 -
12.5.2 House contents insurance 2 2 -1.7 2.1 0.01
12.5.3 Health insurance 2 2 - - -
12.5.4 Transport insurance 4 3 0.4 -3.3 -0.01

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  • Negligible overall effect on the all items 12-month rate change.

  • There is a small downward contribution coming from transport insurance, where average premiums for car insurance fell this year but rose a year ago.

  • Offset by a small upward contribution coming from house contents insurance, where average premiums rose this year but fell a year ago.

12.6 Financial services not elsewhere covered

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12.6 Financial services not elsewhere covered 30 17 0.3 - -0.01

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  • Small downward effect on the all items 12-month rate change.

  • Prices overall were little changed this year but rose a year ago, with the main downward contribution coming from mortgage arrangement fees.

12.7 Other services not elsewhere covered

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to CPI annual rate change
12.7 Other services not elsewhere covered 10 10 0.2 -0.1 -

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  • Negligible overall effect on the all items 12-month rate change.

RPI Summary

Contributions to change in the RPI annual rate

GROUPS      Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
FOOD 116 114 -0.5 0.2 0.08
CATERING 47 47 0.2 0.2 -
ALCOHOLIC DRINKS 61 58 -0.2 - 0.01
TOBACCO 30 29 - 0.3 0.01
HOUSING 254 253 0.1 0.3 0.05
FUEL AND LIGHT 43 48 - -0.1 -
HOUSEHOLD GOODS 60 61 -0.4 0.4 0.05
HOUSEHOLD SERVICES 62 62 - 0.4 0.02
CLOTHING AND FOOTWEAR 43 45 -1.6 0.5 0.11
PERSONAL GOODS AND SERVICES 40 40 0.2 - -0.01
MOTORING EXPENDITURE 122 120 0.3 -0.6 -0.12
FARES AND OTHER TRAVEL COSTS 18 22 -0.3 2.3 0.06
LEISURE GOODS 30 30 -0.2 0.1 0.01
LEISURE SERVICES 74 71 - 0.3 0.03

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RPI Notable Movements

RPI notable movements, June 2014

All items RPI Annual rate +2.6%, up from +2.4% last month
  Highest since February 2014 (+2.7%)
All items RPI exc MIPS (RPIX) Annual rate +2.7%, up from +2.5% last month
  Also +2.7% in February 2014
  Last higher in January 2014 (+2.8%)
All items RPI exc MIPS and indirect Annual rate +3.0%, up from +2.6% last month
taxes (RPIY) Highest since September 2013 (+3.4%)
Tobacco Annual rate +7.5%, up from +7.2% last month
  Also +7.5% in June 2013
  Last higher in May 2013 (+7.8%)
Housing Annual rate +3.0%, up from +2.8% last month
  Highest since November 2010 (+3.1%)
Leisure goods Annual rate +3.8%, up from +3.4% last month
  Highest since March 1992 (+4.4%)
All goods Annual rate +2.2%, up from +1.8% last month
  Also +2.2% in February 2014
  Last higher in January 2014 (+2.4%)
All services Annual rate +2.8%, up from +2.7% last month
  Highest since April 2014 (+3.0%)

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RPI Detailed Briefing

In accordance with the Statistics and Registration Service Act 2007, the Retail Prices Index and its derivatives have been assessed against the Code of Practice for Official Statistics and found not to meet the required standard for designation as National Statistics. ONS consulted in March 2013 on whether to maintain this detailed RPI briefing and, based on views received, decided to continue with its publication.

  • Weights are specified as parts per 1000 in the RPI.

Food

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
FOOD 116 114 -0.5 0.2 0.08

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  • Large upward effect on the all items 12-month rate change.

  • Due to non-seasonal food and, to a lesser extent, seasonal food.

Seasonal food

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
SEASONAL FOOD 20 19 -1.7 -0.3 0.03
Home killed lamb 1 1 -1.2 4.3 0.01
Fresh fish 2 2 -1.3 -1.7 -
Eggs 1 1 -1.6 0.5 -
Unprocessed potatoes 2 2 5.2 2.5 -0.01
Other fresh vegetables 7 7 -3.2 0.4 0.03
Fresh fruit 7 6 -2.2 -2.4 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to other fresh vegetables and home killed lamb, where prices overall rose this year but fell a year ago, with the main upward contributions coming from lettuces and tomatoes.

  • Partially offset by unprocessed potatoes, where prices overall rose this year by less than a year ago.

Non-seasonal food

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
NON-SEASONAL FOOD 96 95 -0.3 0.3 0.05
Bread 5 5 1.0 0.1 -
Cereals 4 4 -1.0 - -
Biscuits and cakes 7 7 -1.1 0.6 0.01
Beef 4 4 2.0 0.5 -0.01
Imported lamb 1 1 -1.2 2.1 -
Pork 1 1 -0.1 -2.7 -
Bacon 2 2 0.5 0.4 -
Poultry 4 4 1.8 -0.5 -0.01
Other meat 7 7 0.2 0.1 -
Processed fish 2 2 -2.5 -4.8 -
Butter 1 1 0.7 1.3 -
Oils and fats 2 2 0.8 2.0 -
Cheese 3 4 1.0 0.9 -
Milk, fresh 4 4 0.3 -0.6 -
Milk products 4 4 -2.1 -0.1 0.01
Tea 1 1 1.0 -1.5 -
Soft drinks 12 11 -0.7 1.3 0.02
Sugar and preserves 1 1 -2.1 0.8 -
Sweets and chocolates 13 11 -0.9 0.3 0.02
Potato products 3 3 -3.0 0.5 0.01
Processed vegetables 2 2 -2.3 0.9 0.01
Processed fruit 1 1 -0.5 0.7 -
Other foods 11 11 0.8 0.5 -
Coffee and other hot drinks 1 2 -2.1 -1.4 -

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  • Large upward effect on the all items 12-month rate change.

  • Due to:
    Soft drinks, sweets and chocolates, biscuits and cakes, potato products and processed vegetables, where prices overall rose this year but fell a year ago, with the main upward contributions coming from packs of fruit drink bottles, orange juice, fruit smoothies, fruit squash, bags of non-chocolate sweets, premium potato crisps and frozen chips; and
    Milk products, where prices overall fell this year by less than a year ago, with the main upward contribution coming from yoghurt/fromage frais.

  • Partially offset by:
    Poultry, where prices overall fell this year but rose a year ago; and
    Beef, where prices overall rose this year by less than a year ago.

Catering

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
CATERING 47 47 0.2 0.2 -
Restaurant meals 27 28 0.2 0.2 -
Canteen meals 4 3 - 0.1 -
Take-away meals and snacks 16 16 0.1 0.3 -

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  • Negligible overall effect on the all items 12-month rate change.

Alcoholic drinks

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
ALCOHOLIC DRINKS 61 58 -0.2 - 0.01
Beer on sales 21 20 0.1 0.3 -
Beer off sales 5 5 0.2 0.1 -
Wines and spirits on sales 20 18 0.1 0.2 -
Wines and spirits off sales 15 15 -1.0 -0.7 -

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  • Small upward effect on the all items 12-month rate change.

  • Prices overall were little changed this year but fell a year ago.

Tobacco

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
TOBACCO 30 29 - 0.3 0.01
Cigarettes 26 25 - 0.4 0.01
Other tobacco products 4 4 - -0.2 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to cigarettes, where prices overall rose this year but were little changed a year ago.

Housing

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
HOUSING 254 253 0.1 0.3 0.05
Rent 86 87 0.1 0.1 -
Mortgage interest payments 29 30 -0.1 0.1 0.01
Council tax and rates 43 42 - - -
Water and other charges 14 14 - - -
Repairs and maintenance charges 10 10 -0.2 0.1 -
DIY materials 7 6 0.7 0.3 -
Dwelling insurance and ground rent 7 6 -0.4 0.6 0.01
House depreciation 58 58 0.5 1.1 0.04

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  • Large upward effect on the all items 12-month rate change.

  • Due to:
    House depreciation, with the smoothed house price index used to calculate this component rising this year by more than a year ago; and, to a lesser extent,
    Mortgage interest payments and dwelling insurance, where average charges rose this year but fell a year ago.

Fuel and light

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
FUEL AND LIGHT 43 48 - -0.1 -
Coal and solid fuels 1 1 - -0.2 -
Electricity 20 22 - - -
Gas 19 21 - - -
Oil and other fuels 3 4 -0.2 -0.6 -

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  • Negligible overall effect on the all items 12-month rate change.

Household goods

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
HOUSEHOLD GOODS 60 61 -0.4 0.4 0.05
Furniture 21 21 0.7 1.7 0.02
Furnishings 9 9 -3.0 -0.2 0.03
Electrical appliances 6 6 -2.6 -1.9 -
Other household equipment 4 4 0.2 1.1 -
Household consumables 12 12 0.4 -0.6 -0.01
Pet care 8 9 -0.4 - -

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  • Large upward effect on the all items 12-month rate change.

  • Due to:
    Furnishings, where prices overall fell this year by less than a year ago, particularly for tufted carpets; and
    Furniture, where prices overall rose this year by more than a year ago, with the main upward contribution coming from kitchen wall units.

  • Partially offset by household consumables, where prices overall fell this year but rose a year ago, particularly for toilet rolls.

Household services

   Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
HOUSEHOLD SERVICES 62 62 - 0.4 0.02
Domestic services 13 13 0.3 0.4 -
Fees and subscriptions 24 24 -0.3 0.8 0.03
Postage 1 1 - - -
Telephone charges 24 24 0.1 -0.1 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to fees and subscriptions, where average charges rose this year but fell a year ago, particularly for house contents insurance and estate agent fees.

Clothing and footwear

  Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
CLOTHING AND FOOTWEAR 43 45 -1.6 0.5 0.11
Men’s outerwear 9 10 -1.1 0.4 0.01
Women’s outerwear 16 16 -3.5 0.4 0.07
Children’s outerwear 5 5 - 2.0 0.01
Other clothing 5 5 0.1 0.2 -
Footwear 8 9 -0.2 0.6 0.01

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  • Largest upward effect on the all items 12-month rate change.

  • Due to:
    Women's outerwear, and to a lesser extent, men's outerwear and footwear, where prices overall rose this year but fell a year ago, with the main upward contributions coming from women's formal trousers, formal skirts, long sleeved tops and jumpers; and men's casual jackets/coats. There is a small downward contribution coming from women's formal tops; and
    Children's outerwear, where prices overall rose this year but were little changed a year ago, with the main upward contribution coming from girls' fashion tops.

Personal goods & services

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
PERSONAL GOODS & SERVICES 40 40 0.2 - -0.01
Personal articles 10 10 0.3 0.5 -
Chemists' goods 15 16 0.3 -0.5 -0.01
Personal services 15 14 0.1 0.1 -

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  • Small downward effect on the all items 12-month rate change.

  • Due to chemists' goods, where prices overall fell this year but rose a year ago, particularly for perfume/eau de toilette, tissues and baby wipes. Partially offset by upward contributions coming from toothbrushes and disposable nappies, where prices rose this year but fell a year ago.

Motoring expenditure

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
MOTORING EXPENDITURE 122 120 0.3 -0.6 -0.12
Purchase of motor vehicles 34 36 -0.4 -0.5 -0.01
Maintenance of motor vehicles 19 17 0.2 0.2 -
Petrol and oil 45 43 0.8 0.1 -0.04
Vehicle tax and insurance 24 24 0.4 -2.6 -0.07

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  • Largest downward effect on the all items 12-month rate change.

  • Due to:
    Vehicle tax and insurance, where average premiums for car insurance fell this year but rose a year ago;
    Petrol and oil, where prices overall rose this year by less than a year ago. The price of petrol, as recorded for the RPI, rose by 0.2 pence per litre between May and June 2014, to stand at 129.7 pence per litre, compared with a rise of 1.1 pence per litre last year to stand at 134.3 pence per litre. Diesel prices fell by 0.4 pence per litre, to stand at 136.0 pence per litre in June 2014, compared with a rise of 1.1 pence per litre last year to stand at 139.4 pence per litre; and, to a lesser extent,
    Purchase of motor vehicles, where prices overall fell this year by more than a year ago, particularly for second-hand cars.

Fares and other travel costs

    Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
FARES AND OTHER TRAVEL COSTS 18 22 -0.3 2.3 0.06
Rail fares 6 7 0.4 0.7 -
Bus and coach fares 4 4 0.5 0.5 -
Other travel costs 8 11 -1.1 3.8 0.06

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  • Large upward effect on the all items 12-month rate change.

  • Due to other travel costs, with the main upward contribution coming from airfares where average charges rose this year but fell a year ago, particularly for European flights. There was a partially offsetting downward contribution coming from domestic flights, where average charges fell this year but rose a year ago.

Leisure goods

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
LEISURE GOODS 30 30 -0.2 0.1 0.01
Audio-visual equipment 6 7 -1.2 -1.2 -
CDs and tapes 3 2 -1.9 1.4 0.01
Toys, photographic and sports goods 9 9 0.4 -0.4 -0.01
Books and newspapers 7 7 -0.2 1.3 0.01
Gardening products 5 5 0.4 -0.4 -

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  • Small upward effect on the all items 12-month rate change.

  • Due to CDs and tapes and books and newspapers, where prices overall rose this year but fell a year ago, with the main upward contributions coming from DVDs and periodicals.

  • Partially offset by a small downward contribution from toys, photographic and sports goods, where prices overall fell this year but rose a year ago, with the main downward contribution coming from computer games.

Leisure services

     Weight 2013 Weight 2014 1 month % change Jun-13 1 month % change Jun-14 Contribution to RPI annual rate change
LEISURE SERVICES 74 71 - 0.3 0.03
TV licence and rentals 13 12 - - -
Entertainment and other recreation 15 15 0.7 0.6 -
Foreign holidays 35 34 -0.4 0.1 0.02
UK holidays 11 10 - 0.9 0.01

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  • Small upward effect on the all items 12-month rate change.

  • Due to:
    Foreign holidays, where prices overall rose this year but fell a year ago; and
    UK holidays, where prices overall rose this year but were little changed a year ago, with the main upward contribution coming from self catering holidays.

Reconciliation of CPI and RPI

(Table 5 of the Consumer Price Inflation Reference Tables) (1.47 Mb Excel sheet)

This table identifies the main factors contributing to the differences between the unrounded inflation rates for the CPI and the RPI. These differences are broken down into: mortgage interest payments, other housing components excluded from the CPI, other differences in the coverage of goods and services, and the formula effect. The final column titled ‘other differences including weights’ is derived as a residual.

The difference between the CPI and RPI unrounded annual rates in June 2014 was -0.77 percentage points, narrowing from -0.87 percentage points in May 2014.

The main factor contributing to the narrowing was:

  • Other differences including weights, which decreased the RPI 12-month rate relative to the CPI 12-month rate by 0.18 percentage points between May and June 2014. The effect came mainly from clothing and footwear, insurance and air transport.

Partially offsetting this narrowing effect was:

  • Other housing components, which increased the RPI 12-month rate by 0.05 percentage points between May and June 2014 but are excluded from the CPI. The effect came mainly from house depreciation.

RPI Miscellaneous Data

Selected average prices

Description                                April 2014 May 2014 June 2014
Petrol per litre Diesel £1.36 £1.36 £1.36
Petrol £1.29 £1.30 £1.30
Alcohol pub prices Draught bitter (pint) £2.92 £2.93 £2.94
Draught lager (pint) £3.36 £3.37 £3.37
Whisky (per nip) £2.53 £2.54 £2.54
Cigarettes Per 20 king size £8.29 £8.36 £8.39

Table notes:

  1. Average prices are as recorded for the RPI.

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Changes in Mortgage Interest Rates

This table gives an estimate of the contribution that changes in the average mortgage interest rate (MI) make to the 1-month percentage change in the RPI.

Changes in mortgage interest rates

Month     1-month % change in the RPI Approx. change in average MI rate Approx. contribution to the 1-month % change  in the RPI
June 2013 -0.1 Down -0.02% points -0.02% points
July 2013 +0.0 Negligible -
August 2013 +0.5 Negligible -
September 2013 +0.4 Negligible -
October 2013 +0.0 Down -0.02% points -0.02% points
November 2013 +0.1 Down -0.02% points -0.02% points
December 2013 +0.5 Negligible -
January 2014 -0.3 Down -0.02% points -0.02% points
February 2014 +0.6 Down -0.01% points -0.01% points
March 2014 +0.2 Down -0.02% points -0.02% points
April 2014 +0.4 Down -0.01% points -0.01% points
May 2014 +0.1 Down -0.02% points -0.02% points
June 2014 +0.2 Down -0.01% points -0.01% points

Table notes:

  1. A one percentage point change in the average mortgage interest rate contributes approx 0.9 percentage points to the 1-month percentage change in the RPI.

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Outlook

The outlook is a summary of seasonal trends, selected news cuttings and other sources of information. It gives some indication of expected changes to the annual rate of the CPI and RPI in the next few months.

FOOD

Seasonal food
  • Seasonal food prices have tended to decrease in July of recent years and are typically dependent on weather conditions both in the UK and around the world.

Food

Seasonal food

Monthly % change for CPI seasonal food index  
Year May June July
2008 1.8 2.1 -0.9
2009 2.0 -0.5 -2.5
2010 -0.6 0.9 0.7
2011 2.9 0.5 -1.0
2012 0.5 0.7 -0.5
2013 -0.3 -1.5 0.2
2014 -1.6 -0.5  

Table notes:

  1. Seasonal food prices in the RPI tend to show a similar movement.

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CLOTHING AND FOOTWEAR

  • Prices tend to fall sharply in July as a result of the summer sales.

Clothing and footwear

Monthly % change for CPI clothing and footwear index
Year May June July
2008 - -1.4 -3.2
2009 0.4 -1.5 -3.2
2010 0.3 -2.1 -4.9
2011 0.4 -1.9 -3.5
2012 -0.1 -4.2 -2.6
2013 1.2 -1.9 -3.2
2014 -0.1 0.6

Table notes:

  1. The clothing and footwear group in the RPI exhibits a similar seasonal pattern.

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FURNITURE, HOUSEHOLD EQUIPMENT AND MAINTENANCE

  • Prices tend to fall in July as a result of summer sales.

Furniture, household equipment and maintenance

Monthly % change for CPI furniture, household equipment and maintenance index
Year May June July
2008 1.4 2.3 -3.2
2009 1.0 1.0 -2.7
2010 1.2 0.7 -1.9
2011 0.4 0.4 -1.1
2012 0.6 - -1.1
2013 1.1 -0.5 -1.0
2014 0.5 0.2

Table notes:

  1. The household goods group in the RPI exhibits a similar seasonal pattern.

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TRANSPORT

Fuels and Lubricants

  • Brent crude oil steadied around $107 a barrel, close to its lowest in three-months after weeks of heavy falls on signs of improving supply from key producers and weak demand in some consuming centres. (www.uk.reuters.com 14 July 2014)

  • When considering the price of petrol between June and July 2014, it may be useful to note that the average price of petrol rose by 0.7 pence per litre between June and July 2013, to stand at 135.0 pence per litre as measured in the CPI.

  • A 1 pence change on average in the cost of a litre of motor fuel contributes approximately 0.03 percentage points to the 1-month change in the CPI.

Passenger transport by Air

  • Air fares tend to rise in July.

Passenger transport by air

Monthly % change for CPI air fares index
Year May June July
2008 9.4 5.9 20.7
2009 6.9 3.0 12.2
2010 6.0 10.0 9.6
2011 -11.1 8.5 9.8
2012 1.4 7.4 21.7
2013 22.0 -2.8 13.9
2014 -3.2 7.0

Table notes:

  1. The air fares index used in the RPI is the same as that used in the CPI, and is included in the other travel costs section.

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HOUSING (RPI)

Mortgage interest payments (MIPs)

  • The Bank of England Bank Rate remained unchanged at 0.5% on Thursday 10 July 2014.

  • The change in average mortgage interest rates recorded in the RPI was negligible between June and July 2013. The Bank of England Bank Rate remained unchanged at 0.5% in June 2013.

  • A one percentage point change in the average mortgage interest rate contributes approximately 0.9 percentage points to the 1-month percentage change in the RPI.

Contacts

Media contact:

Tel: Luke Croydon  +44 (0) 845 6041858

Out of hours media line +44 (0) 7867 906553

Email: media.relations@ons.gsi.gov.uk

Statistical contact:

Tel: Philip Gooding +44 (0) 1633 455896

Email: philip.gooding@ons.gsi.gov.uk

Website: www.ons.gov.uk

Email: cpi@ons.gsi.gov.uk

Consumer Price Inflation recorded message (available after 9.45 am on release day):

Tel: +44 (0) 800 0113703

Consumer Price Inflation Enquiries:

Tel: +44 (0) 1633 456900

Background notes

  1. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

    These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.

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