Price rises of everyday goods revealed as 'millions across Britain struggling'
Inflation remained at 2.2% overall in August but the rate across everyday goods and services varied widely. Prices for some fell and others rose, with the biggest movement seen in the cost of air travel, with average prices jumping by 11.9% in the year to August, having fallen by 10.4% in the 12 months to July.
The latest data from the Office for National Statistics (ONS) showed Consumer Prices Index (CPI) inflation has remained above the 2% target for the second month in a row. The ONS said services sector inflation jumped to 5.6% in August from 5.2% in July as air fares rose across European routes, which offset falls in prices at petrol pumps.
Butter and low-fat milk both saw similar swings from negative to positive inflation, with the price of butter up 0.9% in the year to August after falling 3.9% in the year to July, and low-fat milk rising 0.3% in August after dropping 0.4% in July, according to figures published by the Office for National Statistics (ONS).
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Inflation accelerated for a range of everyday items, including the cost of cinema, theatre and concert tickets, which rose 9.2% in the year to August compared with a jump of 4.4% in the 12 months to July; the price of pizza and quiche, up 4.3% in August after a rise of 0.8% in July; chocolate, up 10.0% last month compared with 6.7% in July; women’s clothes (up 3.9% in August, up 2.6% in July); and bread (up 2.2% in August, up 1.1% in July). Some items saw prices falling less slowly last month than in July, most notably second-hand cars, the average cost of which dropped by 6.6% in the year to August, having fallen by 8.4% in the 12 months to July.
The price of household furniture was down 1.0% in August, a smaller annual drop than 2.4% in July, and there were similar trends for the average cost of fish (down 3.0% in August after falling 4.2% in July), fruit and vegetable juices (down 0.4% in August, down 1.3% in July) and rice (down 2.3% in August, down 2.7% in July). By contrast, the rate of inflation eased last month for tea (up 3.5% in the year to August compared with a jump of 8.4% in July), mineral water (up 2.8% in August, up 5.2% in July), ready meals (2.1% August, 4.2% in July), train travel (2.2% August, 3.7% July) and men’s clothes (1.2% August, 2.6% July).
The average price of both petrol and diesel swung from positive to negative inflation, with the cost of petrol dropping by 4.2% in August after rising 0.8% in July, while diesel fell by 2.2% last month after rising in July by 3.6%. Other items seeing a shift from rising to falling prices include yoghurt, down 3.1% in the 12 months to August after jumping 2.8% in July, children’s shoes, down 1.1% last month after rising 2.9% in July, and crisps, down 1.1% in August after increasing 0.6% in July.
Below is a list of examples of how the Consumer Prices Index (CPI) inflation rate has either accelerated or slowed. Two figures are listed for each item: the average rise in price in the 12 months to July, followed by the average rise in price in the 12 months to August.
Examples where inflation has accelerated, ranked by the size of the change:
Passenger air travel: Jul down 10.4%, Aug up 11.9%
Butter: Jul down 3.9%, Aug up 0.9%
Cinemas, theatres & concerts: Jul up 4.4%, Aug up 9.2%
Pizza & quiche: Jul up 0.8%, Aug up 4.3%
Chocolate: Jul up 6.7%, Aug up 10.0%
Cleaning equipment: Jul down 5.6%, Aug down 3.3%
Second-hand cars: Jul down 8.4%, Aug down 6.6%
Fresh or chilled vegetables other than potatoes: Jul up 4.1%, Aug up 5.4%
Women’s clothes: Jul up 2.6%, Aug up 3.9%
Bread: Jul up 1.1%, Aug up 2.2%
Coffee: Jul up 0.1%, Aug up 1.2%
Low-fat milk: Jul down 0.4, Aug up 0.3%
Potatoes: Jul up 5.4%, Aug up 6.0%
Meat: Jul up 0.7%, Aug up 1.0%
Examples where inflation has slowed:
Yoghurt: Jul up 2.8%, Aug down 3.1%
Diesel: Jul up 3.6%, Aug down 2.2%
Petrol: Jul up 0.8%, Aug down 4.2%
Tea: Jul up 8.4%, Aug up 3.5%
Children’s footwear: Jul up 2.9%, Aug down 1.1%
Edible ices & ice cream: Jul up 4.3%, Aug up 1.7%
Mineral or spring waters: Jul up 5.2%, Aug up 2.8%
Ready-made meals: Jul up 4.2%, Aug up 2.1%
Children’s clothes: Jul up 1.3%, Aug down 0.5%
Crisps: Jul up 0.6%, Aug down 1.1%
Passenger travel by train: Jul up 3.7%, Aug up 2.2%
Men’s clothes: Jul up 2.6%, Aug up 1.2%
Soft drinks: Jul up 2.4%, Aug up 1.5%
Men’s footwear: Jul up 1.4%, Aug up 0.6%
Darren Jones, Chief Secretary to the Treasury, said: “Years of sky-high inflation have taken their toll; and prices are still much higher than four years ago. So, while more manageable inflation is welcome, we know that millions of families across Britain are struggling, which is why we are determined to fix the foundations of our economy so we can rebuild Britain and make every part of the country better-off.”
Grant Fitzner, chief economist at the Office for National Statistics, said: “Inflation held steady in August as various price fluctuations offset each other. The main movements came from air fares, in particular to European destinations, which showed a large monthly rise, following a fall this time last year.
“This was offset by lower prices at the pump as well as falling costs at restaurants and hotels. Also, the prices of shop-bought alcohol fell slightly this month, but rose at the same time last year.
“Following two months of growth, raw material prices fell, driven by lower crude oil prices, while the increase in the cost of goods leaving factories slowed again.”