UK inflation cools down to lowest level since February 2022

September 21, 2023 (MLN): The UK’s inflation rate eased more than expected to the lowest level since February 2022, with the Consumer Prices Index (CPI) clocking in at 6.7% YoY in August 2023, down from 6.8% YoY in July, according to the latest data issued by National Statistics yesterday.

On a monthly basis, CPI rose by 0.3% MoM in August 2023, compared with a rise of 0.5% MoM in August 2022.

The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 6.3% in August 2023, down from 6.4% YoY in July.

On a monthly basis, CPIH rose by 0.4% MoM in August 2023, compared with a rise of 0.5% MoM in August 2022.

The largest downward contributions to the monthly change in both CPIH and CPI annual rates came from food, where prices rose by less in August 2023 than a year ago, and accommodation services, where prices can be volatile and fell in August 2023.

Rising prices for motor fuel led to the largest upward contribution to the change in the annual rates.

Core CPI (excluding energy, food, alcohol, and tobacco) rose by 6.2% in the 12 months to August 2023, down from 6.9% in July; the CPI goods annual rate rose slightly from 6.1% to 6.3%, while the CPI services annual rate slowed from 7.4% to 6.8%.

Core CPIH (excluding energy, food, alcohol, and tobacco) rose by 5.9% in the 12 months to August 2023, down from 6.4% in July; the CPIH goods annual rate rose slightly from 6.1% to 6.3%, while the CPIH services annual rate slowed from 6.5% to 6.1%.

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