Inflation rises under RPI measure


Under the Retail Prices Index, inflation in August rose by 1.1%. It was last as high in January this year. It was also up from the July rate of 1.0%.


The largest contributions came from the food group, where the prices of soft drinks, milk products and processed fish rose this year but fell a year ago. 


In the household goods group, furniture prices rose, with the main upward contributions coming from bedroom, kitchen and dining room furniture. Thirdly, air fares, which make up part of the fares and other travel costs group, rose more this year than in 2014.


The main downward pressure on the inflation rate was in clothing and footwear.


Under the Consumer Prices Index (CPI) — the government’s preferred measure of inflation — inflation fell back to zero from a 0.1% rise in July. 


Inflation has been flat for most of the year and half of the eight monthly rates have been zero, while in April it was in negative territory with a 0.1% fall.


The latest fall was due to a smaller rise in clothing prices from a year ago and cheaper fuel prices, the Office for National Statistics said.


The fall means there is little immediate pressure on the Bank of England to start raising interest rates.


However, there is still the possibility that interest rates may start to rise in the first quarter of 2016.

www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/august-2015/stb-cpi-august-2015.html