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Growth in Inflation Steady in September 2013

Released: 15 October 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 held steady in September 2013. The Consumer Prices Index (CPI) – the headline measure of inflation - grew by 2.7% in the year to September 2013, unchanged from the year to August. This means that a basket of shopping that cost £100.00 in September 2012 would have cost £102.70 in September 2013. CPIH, the new measure which includes the costs owner occupiers’ face in owning, maintaining and living in their own homes, grew by 2.5% - also unchanged from August. RPIJ, the improved variant of the Retail Prices Index (RPI) calculated using formulae that meet international standards, also grew by 2.5%.

On some occasions a steady rate of inflation can mask large upward and downward contributions from the different goods and services in the basket. This month however, the picture was calm compared to many months. An upward contribution to inflation from air fares and a counter-balancing downward contribution from the price of motor fuels were the only contributions of note. The contribution from air fares occurred because prices, overall, fell at a slower rate between August and September this year than they did between the same two months a year ago. The downward contribution from motor fuels was due to prices at the pump falling slightly between August and September this year compared with a rise in prices between the same two months a year ago.

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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