January 17, 2024
According to England’s Office of National Statistics (ONS) the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.2% in the 12 months to December 2023, same as it did in November. The Consumer Prices Index (CPI) rose by 4.0%, up from 3.9% in November. On a monthly basis, CPIH rose by 0.4% in December 2023, the same rate as in December 2022, while CPI rose by 0.4% in December 2023, the same rate as in December 2022.
“The primary factors influencing the yearly inflation rates for both CPIH and CPI are identical in cases where the measures overlap. Nevertheless, a significant distinction between CPIH and CPI inflation rates arises from the owner occupiers’ housing costs (OOH) element, which constitutes 16% of CPIH. This aspect predominantly contributes to the disparities between the inflation rates of CPIH and CPI, thus establishing CPIH as our most all-encompassing gauge of inflation,” highlighted by the ONS.
In November and December, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) annual inflation rates remained identical. This stability was influenced by a decline in three divisions, with the most significant impact coming from the food and non-alcoholic beverages category. On the other hand, upward contributions to the inflation rates were observed in five divisions, with alcohol and tobacco being the most notable contributors. The overall balance of these opposing factors resulted in a consistent inflation rate during this period.
Prices in the alcohol and tobacco division rose by 1.2% between November and December 2023, relative to a decline of 1.1% between the same two months a year prior. Notably, The increase in the annual rate (12.8%) was largely the result of the increase in tobacco duty, after the government announced higher taxes in their autumn statement. Food and non-alcoholic beverage prices rose by 0.5% between November and December 2023, relative to a rise of 1.6% a year prior. The annual rate eased for the ninth consecutive month to 8.0% in December 2023, the lowest since April 2022.
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