Inflation in the United Kingdon is slowly easing based on the latest numbers coming out of England’s Office of National Statistics (ONS).
The consumer prices index including owner occupiers’ housing costs (CPIH) rose by 4.2 per cent in the 12 months to November 2023, which is down from 4.7 per cent in October. The consumer price index (CPI) hovered at 3.9 per cent, down from 4.6 per cent in October.
On a monthly basis, CPIH fell by 0.1 per cent in November 2023 compared to an increase of 0.4 per cent in November 2022, while CPI declined by 0.2 per cent in November 2023, compared with a rise of 0.4 per cent in November 2022.
The ONS reports that, “the primary factors influencing the yearly inflation rates for both CPIH and CPI are identical in cases where the measures overlap. Nevertheless, a significant distinction between CPIH and CPI inflation rates arises from the owner occupiers’ housing costs (OOH) element, which constitutes 16 per cent of CPIH. “
Disparities between the CPIH and CPI
This aspect predominantly contributes to the disparities between the inflation rates of CPIH and CPI, thus establishing CPIH as our most all-encompassing gauge of inflation.” The easing in the annual inflation rates principally reflected downward contributions from eight divisions, including transport, recreation and culture, and food and non-alcoholic beverages.
Notably, no divisions have contributed significantly to an upward impact on inflation rates. In the transport division, prices declined by 1.7 per cent between October and November 2023, relative to a slight increase of 0.1 per cent between the same two months a year ago.
Prices for recreational and cultural goods and services declined by 0.4 per cent between October and November 2023, relative to an increase of 0.6 per cent a year ago. Food and non-alcoholic beverage prices increased by 0.3 per cent between October and November 2023, relative to an increase of 1.1 per cent a year ago, however the annual rates eased for the eighth consecutive month to 9.2 per cent in November 2023.
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