There was a further large downward contribution from second-hand cars, where prices fell by 1.4% between August and September compared with a rise of 1.4% a year ago.Within the transport division, transport services had no contribution to change in the CPIH 12-month inflation rate.
Since November 2018, the largest upward contribution to the CPIH 12-month inflation rate has come from housing and household services, with prices rising by 1.7% in the year to September 2019. The corresponding figures for the CPI can be found in column F of Table 26 in the The largest downward contribution (of 0.09 percentage points) to change in the CPIH 12-month inflation rate came from transport. These were partially offset by downward movements across data processing equipment (including computers and their associated software and peripherals), where prices overall fell by 4.4% between August and September this year but rose by 1.5% between the same two months a year ago.Figure 4 shows the contribution of OOH and Council Tax to the CPIH inflation rate in the context of wider housing-related costs. It is the highest reading since March, as the restrictions caused by the coronavirus pandemic have been eased. Consumer price inflation, UK: September 2019 Price indices, percentage changes and weights for the different measures of consumer price inflation. The size of the contribution to the CPIH 12-month inflation rate from housing and household services has fallen since May 2019 as a result of smaller contributions from electricity, gas and other fuels. Since then, the contribution has fallen back slightly as price rises observed during 2018 have not been repeated this year.Increases in Council Tax starting in 2016 mean that its contribution has risen over recent years, though there was little change in the contribution when the 2019 increases were introduced in April this year. Having fallen to 0.07 percentage points, the contribution in September 2019 is practically one-tenth of the 0.68 percentage point contribution transport had in September 2018. Both of these are significant expenses for many households and are not included in the CPI.The CPI is a measure of consumer price inflation produced to international standards and in line with European regulations. 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. Consumer price inflation, UK: July 2020 What's in the bulletin? The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.1% in July 2020, up from 0.8% in June 2020. It extends the Consumer Prices Index (CPI) to include a measure of the costs associated with owning, maintaining and living in one’s own home, known as owner occupiers’ housing costs (OOH), along with Council Tax. Annual inflation rate in the UK jumped to 1% in July of 2020 from 0.6% in June, beating market forecasts of 0.6%. However, the large upward contribution from sea fares, which fell in price between August and September 2019 but by less than a year ago, was entirely offset by air fares, whose seasonal price fall between August and September was larger this year than in 2018, and, to a lesser extent, international rail fares.Domestic fuels provided a further large downward contribution in September 2019 despite prices being little changed since April 2019, under Ofgem’s energy price cap. We’ll send you a link to a feedback form.