No change in the UK Inflation rate
The Consumer Prices Index annual inflation report for July remains the same as June at 1.8 per cent.
Food and non-alcoholic beverages gave the largest downward pressure affecting the change in the CPI annual rate. This was principally due to meat and vegetable prices falling this year but rising a year ago across a range of products. There was a small downward effect from bread and cereals, where prices rose by less than a year ago.
There was also a large downward pressure from restaurants and hotels where prices rose by less than a year ago. This downward effect came from restaurants and cafes, particularly relating to take-away items, and accommodation services, where prices were little changed this year but rose a year ago.
The only large upward pressure affecting the change in the CPI annual rate came from recreation and culture. The effect came mainly from games, toys and hobbies and, to a lesser extent, from recording media, with prices of computer games and pre-recorded DVDs rising this year but falling a year ago. Partially offsetting these effects was a small downward contribution from photographic equipment where prices fell by more than a year ago.
RPI annual inflation was – 1.4 per cent in July, that is a fall of 1.4 per cent on the year, compared with -1.6 per cent in June. The main factors affecting the CPI also affected the RPI. Additionally, there was an upward pressure from housing with the largest effect coming from house depreciation. Depreciation is excluded from the CPI.
