CPIH inflation rate has jumped to 1.6%

CPIH inflation rate has jumped to 1.6%

10:48 AM, 19th May 2021, About 4 years ago 3

Text Size

The Office for National Statistics (ONS) released data for March 2021 shows the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 1.6% in the 12 months to April 2021 up from 1.0% to March.

This brings inflation levels towards the Bank of England’s medium-term target of 2% without causing immediate short term pressure on monetary policy and the Bank Base rate currently 0.1%

The largest contributors to this inflation rate increase came from housing and household services at 0.57%, and transport at 0.56%.

On a monthly basis, the CPIH rose by 0.7% in April 2021, following a 0.2 increase in March 2021. Prices for both household utilities and clothing rose between March and April 2021, compared with a fall between the same two months a year ago.

The Consumer Prices Index (CPI) rose by 1.5% in the 12 months to April 2021, up from 0.7% growth to March.

On a monthly basis, the CPI rose by 0.6% in April 2021, following a 0.3% increase in March 2021. This compares with a fall of 0.2% in April 2020. Again, price movements for household utilities and clothing are the main reasons for the higher monthly rate this year than a year ago.

Given that the owner occupiers’ housing costs (OOH) component accounts for around 19% of the CPIH, it is the main driver for differences between the CPIH and CPI inflation rates.

Following this month’s increase in gas and electricity prices, housing and household services provides a contribution of 0.57% to the CPIH 12-month rate.

The contribution from transport has shown more variation than any other group over the last two years. It has ranged from a downward contribution of 0.20% in May 2020 during the first lockdown, before gradually increasing to have an upward contribution of 0.56% in April 2021 – its highest contribution since April 2019. Within transport, the movements have been caused principally by changes in the price of motor fuels.

There was also a 0.22% in contribution to CPIH from clothing and footwear, although this division, along with food and non-alcoholic beverages, continues to have a negative effect.

 


Share This Article


Comments

Ron H-W

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:06 AM, 19th May 2021, About 4 years ago

"... and the Bank Base rate currently 0.25%"
I don't get it! I thought the Bank Base rate HAD BEEN at that figure for just 8 days from 11th March 2020, but is currently 0.1% (since 19th March 2020).

Neil Patterson

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:09 AM, 19th May 2021, About 4 years ago

Reply to the comment left by Ron H-W at 19/05/2021 - 11:06
Oooops sorry typo should be 0.1%
Too many percentages in one article!

JB

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:18 AM, 19th May 2021, About 4 years ago

'The largest contributors to this inflation rate increase came from housing and household services at 0.57% .....'

We can thank Shelter and the government and councils for helping to push rents up

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More