Sharp fall in inflation, but fuel prices still rising

Inflation as measured by Consumer price index stands at 1.4% for August 2021, down from 2.3% in July 2021.

Miscellaneous goods and services and Clothing and footwear are the two biggest contributors to the decrease in the rate of inflation, whereby each contributes to a 0.6% and 0.4% decrease in the overall 12-month rate respectively.

All items within Clothing and footwear category experienced a drop in prices. Footwear experienced the biggest decline (-15.1%), followed by children’s outerwear (-14.4%), other clothing (-13.7%) and women’s outerwear (-10.4%).

Transport continues to be the greatest contributor to inflation in August, with petrol and diesel up by 13.7% and driving lessons by 16.7%. There were also increases in DIY materials and heating oil within Housing, water, electricity, gas and other fuels.