Retailers consider price increases as CPI hits 4.4 in July
CPI annual inflation rose in July – up from 4.2 per cent to 4.4 per cent according to figures released by the Office of National Statistics on the 16th August.
The figure comes on the back of a warning from the Bank of England last week that inflation could hit 5 per cent by the end of the year.
According to ONS a number of factors drove the rise including upward pressure on financial services costs, and prices in clothing and footwear and furniture, household equipment and maintenance fell less than last year.
Increases in housing rent – particularly for social housing provided by registered social landlords also rose.
The cost of food rose by 5.8 per cent in July. Bread prices increased by almost 10 per cent, cooking oil rose by 15.9 per cent, and tea, coffee and cocoa increased by 9.1 per cent.
The price of alcoholic drinks and tobacco rose by 10.3 per cent, the highest rate since official records began in 1997. The cost of clothing and footwear rose by 3.1 per cent.
This is also the highest since record began although the British Retail Consortium (BRC) has said that many retailers have countered rising prices by launching deeply discounted summer sales.