UK Retail Inflation Report summary
September 2023
Period covered: August 2023
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Inflation
Headline inflation eased again in August to xx% YoY, edging down from xx% last month – the lowest level since February 2022.
Notably, this was below economists’ expectations of a rise to xx% as well as the Bank of England’s own forecast of headline inflation ticking up in August.
Core inflation, excluding food and energy prices, also fell back to xx%, also below forecasts of xx%.
The slowdown in headline inflation was driven by falls in the cost of overnight accommodation and airfares, while food prices also edged lower.
Restaurant and hotel inflation fell to a xx-month low (xx%) driven by lower prices of accommodation services.
Food inflation also fell back (xx% YoY), supported by easing prices of a range of items including milk, cheese and eggs, vegetables and fish categories.
Elsewhere, recreation and culture and furniture & furnishings, and household appliances also provided downward pressure.
An offsetting upward contribution came from rising motor fuel prices reflecting the recent surge in oil prices due to cuts in production by some leading producers.
Encouragingly, the closely-watched services prices inflation eased to a xx-month low, rising by xx% in August (down from xx% last month) supported by slowing inflation in some of the volatile components of the CPI basket.
The overall cost of raw materials declined with input producer price inflation falling 2.3% YoY from -3.2% last month. Factory gate inflation (-0.4%) also remained in negative territory which should exert downward pressure on prices in the months ahead.
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Inflation eases but remains high
Source: ONS
