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- UK consumer price index rose sharply in June
UK consumer price index rose sharply in June
According to the report from the Office for National Statistics, the Consumer Prices Index (CPI) rose by 2.5% in the 12 months to June 2021, up from 2.1% in May. Economists had expected a 2.2% increase. On a monthly basis, CPI rose by 0.5% in June 2021, compared with a rise of 0.1% in June 2020. Economists had expected a 0.2% increase.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 2.4% in the 12 months to June 2021, up from 2.1% in the 12 months to May.
The largest upward contribution to the CPIH 12-month inflation rate came from transport (0.80 percentage points).
On a monthly basis, CPIH rose by 0.4% in June 2021, compared with a rise of 0.1% in June 2020.
Prices for food, second-hand cars, clothing and footwear, eating and drinking out, and motor fuel rose in 2021 but mostly fell in 2020, resulting in the largest upward contributions to the change in the CPIH 12-month inflation rate between May and June 2021.
These were partially offset by a large downward contribution from games, toys and hobbies, where prices fell this year but rose a year ago.
The number of CPIH items identified as unavailable in June 2021 fell to 14, mostly relating to international travel, and accounting for 1.3% of the basket by weight; we collected a weighted total of 81.4% of the comparable coverage collected before the first lockdown in 2020 (excluding unavailable items).
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