Within transport, the contribution from motor fuels in September is negative for the second month in a row, reflecting a fall in price of 2.1% on the year.Clothing and footwear is the only division producing a downward contribution to the CPIH 12-month inflation rate. In April 2019, the Office of Gas and Electricity Markets (Ofgem) changed the energy price cap, which meant that energy prices have changed little since April 2019 but rose during the corresponding months of 2018.There was also a large upward contribution to the CPIH 12-month inflation rate from restaurants and hotels, where prices rose in the year to September 2019 by 3.2%.The contribution from transport has fallen since April 2019 meaning it no longer provides one of the larger contributions to the CPIH 12-month inflation rate. The inflation rate for September came in at 2.4 per cent, and this will be used to determine the increases in certain benefits from April 2019. The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.7% in September 2019, unchanged from August 2019. Given that OOH accounts for around 17% of the CPIH, it is the main driver for differences between the CPIH and CPI inflation rates.Figure 2 shows the extent to which the different categories of goods and services have contributed to the overall CPIH 12-month inflation rate over the last two years. Main upward contributions came from cost of recreation and culture (2.6 percent), namely computer games and computer games consoles, with the coronavirus lockdown changing the timing of demand and availability of such products. Between August and September 2018, prices of electricity and gas had risen by 1.8% and 1.2%, respectively, resulting in this month’s downward contribution to change in the CPIH 12-month inflation rate.These downward movements were entirely offset by upward movements, with the largest upward contribution (0.06 percentage points) coming from furniture, household equipment and maintenance. We’ll send you a link to a feedback form. Other housing costs (namely, regular maintenance and repair, along with water and sewerage services) tend to make small contributions to the 12-month inflation rate.Consumer price inflation is the rate at which the prices of goods and services bought by households rise or fall. 21.10.2019 September 2019’s Inflation Rate Matters On 16 October 2019, the Office for National Statistics (ONS) announced the Consumer Prices Index (CPI) figure for the year to September 2019 as 1.7%, unchanged from August 2019. These downward movements were offset …
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