Interviews
Clothing & footwear cost less as CPI rises 2.5%
18 Oct '05
3 min read
National Statistics of United Kingdom released the Consumer Prices Index for September 2005.
CPI annual inflation – the Government's target measure – rose to 2.5 percent in September, the highest rate since the start of the official series in January 1997.
For the third consecutive month, the largest upward effect on the CPI annual rate came from transport, with petrol pump prices continuing to rise, reflecting movements in crude oil prices. The average price for ultra-low sulphur petrol rose by 4.6p per litre in September, compared with a rise of around 0.1p a year ago. A partially offsetting large downward effect came from air travel, mainly due to its higher weight in this year's index. The steep fall in air fares was similar to a year earlier but the impact was bigger.
A further large upward effect came from recreation and culture, mainly due to special offers last year on computer game consoles which were not repeated this year, and an increase in the cost of theatre admissions. A partially offsetting small downward effect came from foreign holidays.
The largest downward effect on the CPI annual rate came from clothing and footwear, in particular women's and children's outerwear.
RPI inflation fell in September, where there were additional downward influences from housing components excluded from the CPI, especially mortgage interest payments. This was due to lenders passing on this August's quarter point cut in the repo rate,and last year's quarter point increase in the repo rate dropping out of the 12-month comparison. There was also a large downward effect from depreciation costs – the amount home owners need to spend to maintain their property – as house prices used in their calculation rose by less than last year.
CPI annual inflation – the Government's target measure – rose to 2.5 percent in September, the highest rate since the start of the official series in January 1997.
For the third consecutive month, the largest upward effect on the CPI annual rate came from transport, with petrol pump prices continuing to rise, reflecting movements in crude oil prices. The average price for ultra-low sulphur petrol rose by 4.6p per litre in September, compared with a rise of around 0.1p a year ago. A partially offsetting large downward effect came from air travel, mainly due to its higher weight in this year's index. The steep fall in air fares was similar to a year earlier but the impact was bigger.
A further large upward effect came from recreation and culture, mainly due to special offers last year on computer game consoles which were not repeated this year, and an increase in the cost of theatre admissions. A partially offsetting small downward effect came from foreign holidays.
The largest downward effect on the CPI annual rate came from clothing and footwear, in particular women's and children's outerwear.
RPI inflation fell in September, where there were additional downward influences from housing components excluded from the CPI, especially mortgage interest payments. This was due to lenders passing on this August's quarter point cut in the repo rate,and last year's quarter point increase in the repo rate dropping out of the 12-month comparison. There was also a large downward effect from depreciation costs – the amount home owners need to spend to maintain their property – as house prices used in their calculation rose by less than last year.
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
