UK inflation surges on oil and clothing prices

Despite predictions of a fall, UK inflation as picked up to 1%.

According to the Office for National Statistics (ONS) said on Wednesday that inflation surged from 0.6% in June due to rising petrol and clothing prices.

Jonathan Athow, the ONS deputy national statistician, said: “Inflation has risen, in part, due to the largest monthly pump price increase in nearly a decade, as international oil prices rose from their lows earlier this year.”

In addition to oil, inflation also rose due to a rise in clothing prices, which “fell on the month but by less than a year ago, partly due to different sales patterns throughout the year so far”.

“In addition, prices for private dental treatment, physiotherapy and haircuts have increased with the need for personal protective equipment contributing to costs for these businesses,” he added.

According to the new figures from the ONS, the prices of petrol have soared prices at the fastest rate in almost a decade.

“Between June and July 2020, petrol prices rose by 4.9 pence per litre, to stand at 111.4 pence per litre, and diesel prices rose by 4.0 pence per litre, to stand at 116.7 pence per litre.”

“In comparison, between June and July 2019, petrol and diesel prices fell by 0.9 and 2.3 pence per litre, to stand at 127.3 and 132.0 pence per litre, respectively. This month’s rise in petrol prices was the largest monthly increase since between December 2010 and January 2011, when prices rose by 5.4 pence per litre (to stand at 127.4 pence per litre).”

As for clothing, the ONS commented: “Garments prices overall fell this year by less than a year ago, with the main upward contributions coming from garments for women, in particular formal trousers, casual jackets, jumpers, nightdresses/pyjamas, cardigans and dresses; garments for infants and children, in particular jumpers/sweatshirts/cardigans, T-shirts, trousers and pyjamas; and men’s casual jackets/coats.”

The new inflation figures have come as the UK economy continues to open post-lockdown and growth restarts.


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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.