Petrol and air fares push inflation down
CPI annual inflation the Government’s target measure fell to 2.1 per cent in November, figures released today by the Office for National Statistics show.
The largest downward effect on the CPI annual rate came from transport. Petrol and diesel prices fell for the second successive month, with the average price of ultra-low sulphur petrol down by 3.6p per litre, compared with a rise of 1.1p a year ago. There was also a large downward effect from air travel, with fares on international routes falling by more than a year ago, particularly to European destinations.
A small downward contribution came from restaurants and hotels, with the cost of accommodation services falling this year, particularly for overnight stays in UK hotels, but rising a year ago.
A small upward contribution to the CPI annual rate came from alcoholic beverages and tobacco, with retailers continuing to pass on price increases which started in October affecting all tobacco items. Upward pressure also came from food and non-alcoholic beverages, mainly due to meat prices rising by more than last year, particularly for beef products.
RPI inflation also fell in November, but by less than the CPI, mainly reflecting smaller downward pressure from air travel, and stronger upward pressure from furniture prices, which rose by more than a year ago. In both cases this was due to differences in the weights between the two indices.Small downward influences came from housing components excluded from the CPI, especially mortgage interest payments and depreciation costs the amount home owners need to spend to maintain their property.
RPIX inflation the all items RPI excluding mortgage interest payments fell to 2.3 per cent in November, from 2.4 per cent in October.
As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate is around the average for the European Union as a whole. The provisional inflation rate for the enlarged EU 25 in October was 2.4 per cent, compared with the UK figure for the same month of 2.3 per cent.
