The inflation rate, as measured by the Consumer Prices Index (CPI), remained steady at 2.2% in August 2024, showing no change from July. This stability contrasts with the clothing and footwear sectors, which saw a slower price increase in August.
- Air fares emerged as a significant factor influencing this consistent inflation rate, providing an upward push in the Consumer Prices Index including owner occupiers’ housing costs (CPIH).
- Despite the overall stability, the annual growth in clothing and footwear prices slowed to 1.6%, down from 2% in July.
- The retail industry is absorbing these figures with a noticeable business rate increase, impacting budgets and operations nationwide.
- The data, published by the Office for National Statistics (ONS), offers detailed insights into consumer price dynamics across various sectors.
The Consumer Prices Index (CPI) remained constant at 2.2% in August 2024, mirroring the rate seen in July. This unchanged figure reflects a broader stability in price changes across the economy.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) also stayed steady, marking a 3.1% increase over the year to August 2024. This consistency, as reported by the ONS, suggests that key sectors are stabilising amidst economic pressures.
In particular, clothing and footwear prices increased by only 1.6% in the year leading to August, a noticeable drop from the 2% rise recorded in July. This reduction indicates a softening in consumer demand or adjustments in pricing strategies within the sector.
Air fares significantly contributed to the monthly change in both the CPIH and CPI annual rates. While such fares rose this year, the environment was different in the previous year when they had fallen. This shift highlights air travel’s volatile nature and its impact on inflation metrics.
The retail sector faces additional challenges, including a predicted £140 million hike in business rates as per the latest data. These increased rates are being met with concern from retailers as they navigate the intricate landscape of expenses and consumer demand.
The August 2024 inflation data underscores a stable but challenging economic environment, with key sectors showing varied responses to prevailing conditions.
