Input producer price inflation hits 11%
Everyone has seen prices are increasing and on 15 September the Office for National Statistics (ONS) put some figures on just how much they are increasing. ONS says the headline rate of producer input price inflation for the economy in general hit 11% in August, up from 10.4% in July.
So far, the prices companies are selling their goods at shows a more modest, but still high, 5.9% increase, up from 5.1% in July.
The increases are on the same month a year ago, so to some extent reflect the fall in prices last year, although producer prices across the economy are at an all-time high.
The Consumer Prices Index, including owner occupiers' housing costs (CPIH), rose by 3% in the 12 months to August, up from 2.1% in July. The increase is the largest ever recorded in the CPIH National Statistic 12-month inflation rate series, which began in January 2006. However, ONS says it is likely to be temporary because part of it reflects the 'eat out to help out' price cuts of eating out this time last year.
The more frequently quoted Consumer Prices Index (CPI), which excludes housing costs, rose by even more (3.2%) in the 12 months to August 2021, up from 2% in July - still the largest ever recorded increase since the current series began in January 1997. It, too, is likely to be temporary for the same resason as above.