Inflation eases to 2.7% in August
UK inflation eased in August with the Consumers Prices Index falling to 2.7% as the prices of new autumn clothing ranges, petrol and air fares all slowed.
The figures released by The Office for National Statistics show that annual consumer price inflation dropped from 2.8% in July.
While food price inflation rose from 3.9% in July to 4.1% in August, clothing and footwear prices, which usually rise between July and August, rose by 2% compared with a larger rise of 2.8% a year ago. The ONS said the main downward effect came from garments, particularly women’s outdoor coats and jackets.
The biggest upward contribution to the change in the index between July and August came principally from furniture, household equipment and maintenance, where prices rose by 1.8% between the months compared with a rise of 0.8% a year ago. The main upward effects came from furniture and furnishings, major appliances and small electric goods. There were also smaller upward contributions from games, toys and hobby products.
Never Miss a Retail Update!While petrol prices rose 2p per litre compared to a rise of 3.5p per litre in the same month last year, air fares were up 9.4% compared to 10.2% in the same month last year with the main downward pressure coming from domestic routes. Diesel prices rose by 2.0 pence per litre this year compared with a rise of 3.3 pence a year ago.
The ONS said that inflation as measured by the retail prices index rose to 3.3% in August from 3.1% in July.
