3. Notable movements in prices
The unchanged Consumer Prices Index including owner occupiers’ housing costs (CPIH) annual inflation rate in March 2024 reflected offsetting contributions from the different product groups. There were downward contributions from five divisions, most notably food and non-alcoholic beverages, offset by upward contributions from three divisions, particularly housing and household services.
Food and non-alcoholic beverages
Prices for food and non-alcoholic beverages rose by 4.0% in the year to March 2024, down from 5.0% to February. The March figure is the lowest annual rate since November 2021. The rate has eased for the 12th consecutive month from a recent high of 19.2% in March 2023, the highest annual rate seen for over 45 years.
Prices rose by 0.2% between February and March 2024, compared with a monthly rise of 1.1% a year ago. Prices have been relatively high but stable since early summer 2023, rising by less than 2% between May 2023 and March 2024. This compares with a sharp rise of around 22% seen between March 2022 and May 2023.
Figure 2: Annual inflation rate for food and non-alcoholic beverages lowest since November 2021
CPIH, and food and non-alcoholic beverages annual inflation rates, UK, March 2014 to March 2024
Source: Consumer price inflation from the Office for National Statistics
Download this chart Figure 2: Annual inflation rate for food and non-alcoholic beverages lowest since November 2021
Image .csv .xlsThe annual rates for most types of food product eased between February and March 2024, with the largest effects coming from bread and cereals, and meat. Prices for bread and cereals rose by 0.2% on the month, compared with a rise of 2.2% a year ago, resulting in an annual rate in March 2024 of 4.0% – the lowest since January 2022. Prices of some bakery products, such as chocolate biscuits and crumpets, fell between February and March 2024 but rose between the same period a year ago.
Meat prices fell by 0.5% between February and March this year, compared with a rise of 1.4% a year ago. This resulted in an annual rate of 3.1% in the year to March 2024, the lowest rate since November 2021. The main downward effect behind the easing in the rate came from pork products.
Overall, the annual rate eased in 8 of the 11 food and non-alcoholic beverages classes, the exceptions being vegetables, hot beverages, and soft drinks.
Furniture and household goods
Prices of furniture and household goods fell by 0.9% in the year to March 2024, compared with a small rise of 0.1% to February. This is the largest annual fall in prices since September 2016 and the first negative rate since December 2020. On a monthly basis, prices rose by 0.3% between February and March 2024, compared with a rise of 1.3% a year ago.
Figure 3: First negative annual inflation rate for furniture and household goods since December 2020
CPIH, and furniture and household goods annual inflation rates, UK, March 2014 to March 2024
Source: Consumer price inflation from the Office for National Statistics
Download this chart Figure 3: First negative annual inflation rate for furniture and household goods since December 2020
Image .csv .xlsThe easing in the annual rate reflected small downward effects from a range of classes, principally furniture and furnishings, and non-durable household goods. Prices of furniture and furnishings fell by 2.3% in the year to March 2024, compared with an annual fall of 1.6% to February. Prices of non-durable household goods rose by 1.1% in the year to March, compared with a larger rise of 4.5% to February. The non-durable household goods downward effect was caused by price movements for household cleaning products.
Clothing and footwear
Prices of clothing and footwear rose by 3.9% in the year to March 2024, down from 5.0% the previous month. The rate in March was the lowest since November 2021. On a monthly basis, prices rose by 0.6% between February and March 2024, compared with a rise of 1.6% a year ago. This reflects the incidence of discounting in the dataset, which fell by less this year than a year ago. Prices tend to rise between February and March as new season stock continues to enter the shops but the rise in 2024 was less than in most recent years.
The downward effect came principally from women’s clothing and footwear, with prices rising on the month but by less than a year ago.
Housing and household services
The overall easing in the inflation rate was partially offset by an upward effect from housing and household services, whose annual rate was 3.1% in March 2024, up from 2.9% to February. This compares with a recent annual peak of 11.8% observed in January and February 2023.
The increase in the annual rate reflected an upward effect from owner occupiers’ housing (OOH) costs, which rose by 6.3% in the year to March 2024, compared with a rise of 6.0% to February. The OOH annual rate was last higher in July 1992.
Transport
Prices in the transport division fell by 0.1% in the year to March 2024, compared with a fall of 0.4% to February. The annual rate has been negative for the latest five months.
The small overall change in the annual rate masks offsetting movements in some of the transport categories, with a large upward effect from motor fuels partially offset by smaller downward effects from second-hand cars, rail fares and air fares.
The average price of petrol rose by 2.6 pence per litre between February and March 2024 to stand at 144.8 pence per litre, down from 146.8 pence per litre in March 2023. Diesel prices rose by 2.8 pence per litre in March to stand at 154.1 pence per litre, down from 166.5 pence per litre in March 2023. These movements resulted in overall motor fuel prices falling by 3.7% in the year to March 2024, compared with a fall of 6.5% in February.
There was also a small upward effect from maintenance and repairs, where prices rose by 0.8% in March 2024, compared with a monthly fall of 0.6% a year ago. This was because prices of roadside recovery services rose this year but fell a year ago.
Figure 4: Annual inflation rate for motor fuels negative for 13th consecutive month
CPIH, transport and motor fuels annual inflation rates, UK, March 2014 to March 2024
Source: Consumer price inflation from the Office for National Statistics
Download this chart Figure 4: Annual inflation rate for motor fuels negative for 13th consecutive month
Image .csv .xlsSecond-hand car prices rose by 0.2% between February and March 2024, compared with a larger rise of 1.0% a year ago. On an annual basis, prices fell by 8.1% in the year to March 2024, compared with a fall of 7.3% to February. The annual rate has been negative for eight consecutive months.
The small downward effects from rail fares and air fares resulted from prices rising on the month this year by less than a year ago. The annual rise in regulated rail fares in England in March 2024 was capped at a lower rate than in March 2023. Air fares rose by just 0.1% between February and March this year, compared with a 7.7% monthly increase a year ago, with the main downward effect coming from European routes.
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2024-04-18 06:23:39Z
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