Food Made The Largest Upward Contribution To The Change In The Annual CPIH Inflation Rate

17th August 2022

n a monthly basis, CPIH rose by 0.6% in July 2022 compared with no change in July 2021. Figure 4 shows how each of the main groups of goods and services contributed to the change in the CPIH annual inflation rate between June and July 2022.

To understand what has changed the inflation rate between these months, we can look at the differences between the contributions made by the groups to the rate in June 2022, and the rate in July 2022. Summing the contributions to change across the 12 divisions results in the change to the annual CPIH rate between the latest two months, that is, the rise from 8.2% to 8.8%.

The rise in the annual CPIH annual rate for July 2022 was driven by contributions from 8 of the 12 divisions, with the largest contribution (of 0.26 percentage points) coming from food and non-alcoholic beverages. Within food and non-alcoholic beverages, there were upward effects from all 11 classes, with the largest movements (of 0.04 percentage points) coming from bread and cereals, and from milk, cheese and eggs.

Note
In case you are wondering what CPIH stand for - What does the H stand for in CPIH?
Consumer Prices Index including owner occupiers' housing costs (CPIH)

Read the full inflation report at https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/july2022