UK Inflation Eases to 2.7% in August


In August, UK's Consumer Prices Index grew by 2.7 percent year-on-year, down from 2.8 percent in July. The largest contributions to the slowdown came from the transport and clothing sectors, partially offset by an upward contribution from furniture, household equipment and maintenance.

The contributions to the fall in the CPI rate came primarily from three areas; motor fuels, air transport and clothing. Petrol prices rose by 2.0 pence per litre between July and August this year but by a larger 3.5 pence between the same two months last year. 

Similarly air fares rose by 9.4 percent between July and August this year, compared with 10.2 percent a year ago. As usual, clothing prices rose as the autumn ranges started to enter the shops but the rises this year were less than those seen in 2012.

The most notable, partially offsetting, upward contribution came from furniture, household equipment and maintenance where prices rose by 1.8 percent between July and August 2013 compared with 0.8 percent between the same two months a year ago.

ONS | Nuno Fontes | nuno@tradingeconomics.com
9/17/2013 9:42:54 AM