LONDON (MNI) – Mild weather, the lower cost of petrol and much
softer food prices, along with continuing discounting by supermarkets,
all contributed to drive inflation down in November.
Headline CPI fell in line with analysts’ expectations to 4.8% on
the year in November from 5.0% in October. The biggest single downward
effect came from food and non-alcoholic beverages, which accounted for
0.1 percentage point of the 0.2 point decline.
National Statistics said within the food category bread and cereals
were lower due to base effects from the marked rise a year ago. There
were also reports of good harvests of potatoes and onions, boosting the
supply side.
Some of the sales activity, centred around supermarket discounting,
seen in October continued into November, a National Statistics official
said.
The falling in the cost of petrol, down 1 pence per litre this year
compared with a 1.8 pence a litre rise, lead to a significant down
effect from transport costs. Transport knocked 0.09 percentage point off
the yearly CPI rate.
Other, smaller down effects came from clothing and footwear, which
contributed 0.04 percentage point to the yearly change and furniture and
furnishings, which accounted for the same amount.
NS said clothes discounting was notable in outerwear, such as coats
and jumpers, with sales hit by the warmer weather.
–London bureau: 0044 20 7862 7491; email: drobinson@marketnews.com
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