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CPI/RPI - August figures rise

CPI inflation rose again last month according to figures released by the ONS today. It was up from 4.4 per cent in July to 4.5 per cent in August.

In addition annual inflation measured by the RPI (retail price index) also rose last month up to 5.2 per cent from 5 per cent in July.

The figures continue a worrying trend for retailers and businesses in general this month – especially following poor sales volume figures announced last week.

The ONS said there were a number of upward pressures to blame for the rise including rises in clothing, fuels and lubricants, furniture and domestic heating. In clothing and footwear prices rose overall by 3.7 per cent.

This was the largest rise for a July to August period since the ONS records began.

The biggest cause came from women’s outwear where prices rose at the start of the autumn season with retailers possibly taking effect of demand for customers buying outwear early thanks to the wet and windy weather.

In transport the figures were also affected by an 11.2 per cent rise in air fares while in furniture, household equipment and maintenance another record rise for a July to August period was also seen with prices up 2.0 per cent thanks to prices inflating in furniture and furnishings and non-durable household goods by 2.3 per cent and 4.9 per cent respectively.

In recreation and culture prices fell by 0.4 per cent – the most significant downward contribution to the CPI figure and the first fall for a July to August period since 2005.

The CPI figure has now touched 4.5 per cent three times so far this year - it previously hadn’t hit 4.5 per cent since September 2008.

2011 Month   CPI % 

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