Consumer price inflation in UK touches 40-year high in late 2022

13 Mar '23

1 min read

Pic: Shutterstock/ HAKINMHAN

Consumer price inflation in the UK reached 40-year highs in late 2022, including the effects of the re-opening of economies in 2021 and bottlenecks forming in the global economy. Clothing and footwear were included among goods that were most likely to have been affected by shifts in consumer demand in response to coronavirus restrictions in place, as per the Office for National Statistics (ONS).

Items affected by demand and supply factors have made significant contributions to the 12-month rate of Consumer Prices Index (CPI) inflation over the last year. They accounted for an average of 57 per cent of the inflation from core components in 2022, despite accounting for only 39 per cent of the core components of the CPI inflation basket by weight. This is consistent with the experience in the euro area, where these products accounted for 54 per cent of the inflation from core components on average in 2022, and 17 per cent of total CPI inflation.

Items affected by the re-opening of economies explain around a sixth of the CPI inflation in 2022, while items affected by supply bottlenecks explain a 10th. These goods have experienced higher inflation in 2022 than their historic trends.

Fibre2Fashion News Desk (NB)

More Textiles News - United Kingdom...