UK inflation slumps to lowest level since 2016

UK inflation slumps to lowest level since 2016

Inflation slid to its lowest level for almost three years in August, on the back of tumbling computer games prices and a slowdown in price increases for clothing.

Figures from the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) was 1.7% last month, compared with 2.1% in July. This was the lowest rate of inflation since November 2016.

The fall was steeper than analysts predicted, having forecast inflation of 1.9%.

Mike Hardie, head of inflation at the ONS, said: “The inflation rate has fallen noticeably into August, to its lowest since late 2016.

“This was mainly driven by a decrease in computer game prices, plus clothing prices rising by less than last year after the end of the summer sales.”

Prices for recreation and culture were 0.6% down against the previous month, as it was heavily affected by plummeting prices in the volatile games, toys and hobbies category.

The category – which is heavily impacted upon by the calendar for video games – slid 5% against the previous month on the back of heavy discounting.

Clothing and footwear also contributed to the decline, as prices increased by 1.8%, significantly slower than after the end of the equivalent summer sales period last year.

Computer games prices fell over the period (Rick Findler/PA)
Computer games prices fell over the period (Rick Findler/PA)

Meanwhile, package holidays saw inflation slow to 0.4%, while accommodation services saw prices fall by 1.7%.

Alcoholic drink prices saw a slowdown in growth to 0.5%, after beer prices sank by 1.1% and there was a slowdown in inflation in wine prices.

However, food prices increased by 0.6% during the month on the back of rising bread, cereals and meat prices.

The Retail Prices Index (RPI), another measure of inflation, dipped to 2.6% for August from 2.8% in July.

The CPI including owner-occupiers’ housing costs (CPIH) – the ONS’s preferred measure of inflation – was 1.7% in August, from 2% in July.

- Press Association

More on this topic

One of Britain’s worst paedophiles stabbed to death in prisonOne of Britain’s worst paedophiles stabbed to death in prison

US ‘absolutely ruthless’ in safeguarding of suspect in English road death caseUS ‘absolutely ruthless’ in safeguarding of suspect in English road death case

Latest: Knifeman who stabbed three at shopping centre held on suspicion of terrorismLatest: Knifeman who stabbed three at shopping centre held on suspicion of terrorism

Tommy Robinson faces a blanket ban on attending England matchesTommy Robinson faces a blanket ban on attending England matches

More in this Section

Revenues up at CervicalCheck suit lab firmRevenues up at CervicalCheck suit lab firm

'Taken Down' and 'Operation Transformation' overseas sales help RTE commercial arm increase profits'Taken Down' and 'Operation Transformation' overseas sales help RTE commercial arm increase profits

Online tutoring service aiming to help families who can't afford grinds to scale up operationsOnline tutoring service aiming to help families who can't afford grinds to scale up operations

Protesters climb onto North Sea oil platformsProtesters climb onto North Sea oil platforms


Lifestyle

Fiann Ó Nualláin follows in the footsteps of the Fianna as he explores a province’s hills and vales.Munster marvels: Plants that are unique to a province

Cupid must be something of a motoring enthusiast, as he had most definitely steered his way in the neighbourhood when Amie Gould and Shane O’Neill met at the Rally of the Lakes 12 years ago.Wedding of the Week: Cupid steers couple to right track

When it comes to podcasting, all it takes is one idea — and who knows where it can take you.Podcast Corner: Crimes and creatures rule at Cork’s first podcast fest

Claymation meets science fiction in this enchanting film, writes Esther McCarthy.Latest Shaun adventure is out of this world

More From The Irish Examiner