According to recent data from The Office for National Statistics, UK inflation rates have slightly eased, but the fashion industry continues to experience faster price rises. Annual consumer price inflation (CPI) unexpectedly dropped to 6.7% in August, which was lower than economists’ predicted increase of 7%. However, this decrease comes after July’s rise of 6.8% that was mainly driven by higher fuel prices.
When looking at core inflation, which excludes volatile factors such as food and energy prices, there was also a decline from 6.9% in July to 6.2% in August, surpassing expectations of around 6.8%. Despite the significant decreases from previous months, these figures still remain well above the Bank of England’s target level of 2%.
On the other hand, the Consumer Prices Index including owner-occupiers’ housing costs (CPIH) rose by 6.3% in August, slightly lower than July’s increase of 6.4%. The main factors contributing to the decrease in both CPIH and CPI annual rates were the food sector, where prices rose less compared to the previous year, and accommodation services, which experienced a decrease in prices.
However, the fashion sector received less optimistic news for consumers. After a 6.6% rise in July, fashion prices increased by 7% in August. This suggests that retailers and brands are passing on their higher costs to customers, potentially discouraging cash-strapped consumers from investing in new wardrobe items this season.
Overall, while there have been some signs of easing inflation rates in the UK, the fashion industry continues to see significant price increases. This could potentially impact consumer spending habits and highlight the ongoing challenges faced by retailers and brands.
(useful links:
1. Official data from the Office for National Statistics
