Inflation Figures Steady

CPI/RPI 12/2007After yesterday’s Factory Gate Inflation figures, CPI remains steady and RPI drops.

CPI, the Consumer Price Index, remained at 2.1% from November. The Government inflation target is 2%.

RPI, the Retail Price Index, actually dropped from 4.3% to 4% in December.

Downward contributions to the Consumer Price Index were mainly from the fact that household bills like gas & electricity were not increased at the same rates as they were during the equivalent period 12 months previously and that kitchens and some furniture lines were being discounted, again lower than at the same time last year.

Upward contributions to the CPI came from food and non-alcoholic beverage prices increasing; Cauliflowers, tomatoes, onions and cabbages in particular with bread & cereals, sugar, jam, confectionery and chocolate also contributing.

Clothing & footwear also contributed to the upward pressures due to a reduction in the discounting this time around.

Mortgage arrangement fees also lent weight to an upward affect.

As for RPI, the fall from 4.3% in November to 4% in December was due to a smaller than last year increase in average mortgage payments.

RPIX, RPI without mortgage payment data, was down from 3.2% to 3.1%.

The UK’s 2.1% inflation figure compares to 3.1% in the European Union.

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