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Comment on Consumer price indices
(Comment from Scottish Engineering on the Consumer price indices)

In the year to July, the Consumer Prices Index (CPI) rose by 1.8% and was unchanged from June. The all items Retail Prices Index (RPI) fell by 1.4% compared with a fall of 1.6% in June. Over the same period, the all items Retail Price Index excluding Mortgage Payments Index (RPIX) rose by 1.2%, up from 1.0% in June.

The largest downward contribution to change in the CPI annual rate came from food and non-alcoholic beverages. The largest upward contribution to change in the CPI came from recreation and culture, coming mainly from games, toys and hobbies and, to a lesser extent, from recording media, with prices of computer games and pre-recorded DVDs rising this year but falling a year ago. Small upward contributions came from alcoholic beverages and tobacco, furniture, household equipment and maintenance. In communications, the overall price of telephone equipment and services was little changed this year but fell a year ago.

 

The largest upward contribution to the change in RPI annual rate came from motoring expenditure. Car prices rose this year compared with a fall a year ago and there was also an upward effect from vehicle tax and insurance, with motor insurance premiums rising by more than a year ago. These effects were partially offset by a large downward contribution from petrol and oil.

 

The largest downward contribution with regard to RPI annual rate came from food, particularly with fresh vegetables, meat, biscuits and cakes. There were further downward contributions from fuel and light, with the effect coming principally from oil and other fuels, where heating oil prices fell this year but rose a year ago. Fares and other travel costs rose by less than a year ago on both European and long haul routes.

 

 
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