The latest report from the Office of National Statistics indicated that inflation has risen for the first time in 2018 to 2.5%, up from 2.4% in June 2018. Main points from the report show:
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.3% in July 2018, unchanged from June 2018.
- Rising prices for computer games and transport fares produced the largest upward contributions to change in the 12-month rate between June and July 2018, although computer game prices tend to be highly variable from month to month.
- The upward effects were offset by falls in prices for clothing and footwear, and the removal of initial charges for investment in some unit trusts.
- Prices for clothing and footwear fell by 0.4% between July 2017 and July 2018, the first time the 12-month rate has been negative since October 2016.
- The Consumer Prices Index (CPI) 12-month rate was 2.5% in July 2018, up from 2.4% in June 2018.
ONS head of inflation Mike Hardie said: “Transport tickets and fuel, along with often erratic computer game prices, drove up costs for consumers. On the other hand, there was a drop in prices for women’s clothing and footwear, and some financial services.”
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