Furniture prices fell in August as overall inflation ‘held steady’ as various price fluctuations offset each other.
According to the latest Office for National for National Statistics (ONS) data, the Consumer Prices Index (CPI) rose by 2.2% in the 12 months to August 2024, unchanged from July. On a monthly basis, CPI rose by 0.3% in August 2024, the same rate as in August 2023.
The largest upward contribution to the monthly change in both CPIH and CPI annual rates came from air fares, which rose this year but fell a year ago; the largest offsetting downward contributions came from motor fuels, and restaurants and hotels.
Furniture and furnishing prices fell by 1.3% in August, down from a decline of 2.6% in July, while down from a 4.1% rise compared to the same month last year.
The retail price of household furniture decreased by 1% in the month, down from a fall of 2.6%, while down from 4.2% last year.
Garden furniture prices fell 13%, down from 18.1% on last month and down from a rise of 5.8% compared to last year.
Carpets and other floorcoverings prices rose 0.1%, compared to fall of 0.6% the previous month, while lower than the 7.6% rise last year.
Other household textile prices, including furnishings fabrics, curtains and bedding, saw prices rise by 0.5%, down from 0.7% the previous month, while down from 4% on last year.
Meanwhile, Producer Price Inflation (PPI) saw the rate of furniture output prices, factory gate, rise 2.1% in August on the same month in the previous year. The rate was unchanged from the rise of 2.1% in July. Furniture input prices, material cost of production, were up by 0.1% on the same month last year and unchanged from the previous month.
Producer input prices fell by 1.2% in the year to August 2024, down from a revised increase of 0.2% in the year to July 2024. Producer output (factory gate) prices rose by 0.2% in the year to August 2024, down from an increase of 0.8% in the year to July 2024. On a monthly basis, producer input prices fell by 0.5%, while output (factory gate) prices fell by 0.3% in August 2024.
Commenting on the inflation figures for August, ONS Chief Economist Grant Fitzner said: “Inflation held steady in August as various price fluctuations offset each other. The main movements came from air fares, in particular to European destinations, which showed a large monthly rise, following a fall this time last year.
“This was offset by lower prices at the pump as well as falling costs at restaurants and hotels. Also, the prices of shop bought alcohol fell slightly this month, but rose at the same time last year. Following two months of growth, raw material prices fell, driven by lower crude oil prices, while the increase in the cost of goods leaving factories slowed again.”
Responding to the latest CPI inflation figures, Kris Hamer, Director of Insight of the British Retail Consortium, said: “Headline inflation remained unchanged in August. Despite energy prices continuing to fall, this was counteracted by a rise in the transport category, particularly in air fares. Meanwhile, there was welcome news across wider retail as heavy discounting saw the inflation rate of clothing and footwear continue to fall. Households will have been happy to see food inflation fall to its lowest level since October 2021 as retailers continue to offer their customers the best value possible on a range of items with some goods such as fresh fruit and vegetables falling in price on the month.
“With the headline rate remaining above the Bank of England’s 2% target, it is clear that the government must not take low inflation for granted. Retailers are striving to offer good value to their customers, and can go further with a supportive policy environment. With new research showing the retail industry paying more than its fair share of business taxes, it’s time the government addressed this burden by introducing a Retail Rates Corrector. This would reduce the industry’s business rates bill by 20%, allowing retailers to continue to offer affordable prices to their customers while saving shops, protecting jobs and unlocking investment.”
