ONS Figures Show Inflation Eases a Little Due to Lower Petrol Prices

A fall in peterol prices has caused inflation to ease. 

The 12-month growth rate of the Consumer Prices Index including owner occupiers’ housing costs (CPIH) fell to 2.5% in February 2018, with a broad range of categories seeing a reduction in the 12-month growth rate.

London had the highest average level of consumer prices in the UK in 2016 compared with the UK average, with Northern Ireland having the lowest.

A slowdown in the 12-month growth rate of the core input Producer Price Index (PPI) has not yet fed through to core output PPI and core CPIH.

Movements in the stock-weighted House Price Index (HPI) closely track those in the flow-based measure.

“A small fall in petrol prices alongside food prices rising more slowly than last year helped pull down inflation, as many of the early 2017 price increases due to the previous depreciation of the pound have started to work through the system.

"Hotel prices also fell and the cost of ferry tickets rose more slowly than last year, when prices were collected on Valentine’s Day when many people could have been taking mini-breaks.

“There were some signs of slowing price rises in the cost of products leaving factories, with food and petroleum products prices falling. Inflation of raw materials is also slowing down following high annual inflation in 2017, with prices of crude oil lower than in January.

“House price growth remained steady, with prices increasing strongly across much of the country, although London and the North East are both lagging behind."

Image: How it was in 1974 Bed and Breakfast in a listed building £3.75 per night.