UK’s inflation rate
The Consumer Prices Index (CPI) picked up slightly from May’s four year low of 0.5%, the Office for National Statistics (ONS) said.
Food and alcohol prices fell but clothing and games rose, the ONS said.
Despite the slight increase in the rate, inflation remains below the Bank of England’s 2% target.
However, #coronavirus induced drop in demand likely to drag inflation close to zero in near term & may even turn temporarily negative as VAT cut & ‘eat-out’ vouchers enter the calculation pic.twitter.com/C7qCuLJPfZ
— Suren Thiru (@Suren_Thiru) July 15, 2020
Jonathan Athow, at the ONS, said: “The inflation rate has increased for the first time this year, but remains low by historical standards.
“Due to the impact of the coronavirus, clothing prices have not followed the usual seasonal pattern this year, with the normal falls due to the start of the summer sales failing to materialise.
“Prices for computer games and consoles have risen, but food prices, particularly vegetables, have fallen.”
Men’s clothing rose in price, with increases coming “across almost the full range,” the ONS said.
Women’s clothes showed “a more mixed picture across the different products,” bit with the overall effect still upward.
But games, toys and hobbies, in particular computer games and consoles, made the biggest contribution to the inflation rise, said ONS.
“It is possible that prices have been influenced by the coronavirus (Covid-19) lockdown changing the timing of demand and the availability of some items, particularly consoles,” the ONS added.
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