Inflation up to 4.4%
Tuesday 12th August 2008, 11:50AM BST.
The Consumer Price Index (CPI) – the government measure of inflation – has increased to 4.4 per cent in July, according to the Office for National Statistics (ONS).
This is well ahead of the government’s target of two per cent, and an increase on the 3.8 per cent recorded during June this year.
The figure also represents the largest jump ever recorded since records began, well ahead of industry expectations.
Strong upward pressure came from food and non-alcoholic beverages – especially meat, bread and cereals, and vegetables – where prices rose this year.
Transport has also played a role, largely due to the price of fuels and air transport. Petrol also increased in price by 1.2 pence per litre between June and July this year, to stand at 118.8 pence, compared with a fall of 0.4 pence last year.
Housing and household services also exerted an upward pressure, according to the ONS; principally due to gas and electricity bills which were unchanged this year but fell a year ago.
However, a small downward pressure came from recreation and culture, where the price of computer games fell this year but rose a year ago.
The price of pre-recorded DVDs also fell by more than a year ago.
The Retail Prices Index (RPI) measure of inflation rose to five per cent in July, up from 4.6 per cent in June.
The main factors affecting the CPI also affected the RPI.
Additionally, there was a large downward contribution from housing with the main effect coming from house depreciation (which is excluded from the CPI).
The announcement puts further pressure on the Bank of England to raise interest rates and subdue spending. However, the monetary policy committee (MPC) recently elected to maintain rates for a fourth consecutive month at five per cent.
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Please Mr Brown: call a General Election now before you and your Chancellor ruin this country.
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yeah that’ll be good, but a Tory PM will of course have the ability to control world oil prices…
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Not even the Tories can save us from New Labours waste and incompetence this time. You can double the 4.4 for a start!
Many thanks Bliar & Clown
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Andrew, I wonder if you’re perhaps too young to remember the Tories’ record on inflation? It wasn’t good!
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I am feeling much encouraged after reading this report. Although, of course, it has been a tough few months with utility prices increasing greatly, fuel increasing well ahead of inflation and food costs spiralling, the news that the price of computer games fell must surely be a great comfort to us all!
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Peter: your argument is pointless. The Conservative party is unrecognisable from its Governments in the past in the same was as the Labour party was in 1997 was unrecognisable from the Kinnock / Foot / Callaghan era.
But if you wish me to indulge you I could refer to Dennis Healy’s begging mission to the IMF in the 70s after he and Callaghan almost bankrupted the UK.
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H. St. John Peasbody I agree the Tory party is a lot different from the Tory party of the 80′s and even 90′s for a start the current Tory Party is full of yaa hooo Henries who would not have a clue how to run the country if it came up and bit them on the backside.
The Tory Party no LONGER has a strong leader in the vein of Maggie Thatcher.
and thirdly the only thing the Tory party has learnt over the past 5 years is how to use PR and spin in attempting to trick the voters into voting for them at the next election.
Mark my words if the Tory Party got elected inflation would soon be at 15%
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Peter
I remember the 3 day week, blackouts, Unions ruining the country and the awful times while Mrs Thatcher got us back on track.
This New Labour shambles is the worst government on record, it inherited a golden goose of an economy and has squandered billions and illegal war to boot.
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bring back maggie, the mother of our nation
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And would you trust David Cameron as Primeminster?
This is a man who chains a bike up to a bollard in London
And only recently called Russia “Bullies”
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Well Russia is a bully – at least Mr Cameron, who I will joyfully have as Prime Minister after the showers that are Bliar & Broon, stands up and tells it as it is, unlike Milliband & Co (“the Foreign Office”) who are as per usual being useless.
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wow cheap computer games, thanks gordon brown, i cant eat them can i!!
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harold peasebody and others would like to take us back to those heady old days of 10% inflation and 15% interest rates, harold we have moved on we have had 11 years of stable government and 11 more to come of gentle socialism a fair deal for all rather than a get rich quick mentality for the priviledged rich.
cameron may promise anybody who listens the world, but cannot compete with labour apart from throw dirt at them. oil prices are dropping dramatically, this will lower inflation. gordon brown isn’t responsible for this fall neither was he at fault when oil prices rose. get a life harold and others and bask in the sunshine of new labour, gentle socialism,. i do not think gordon can be held responsible for another poor summer unless harold knows different!!
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I really can’t believe that there are people here who believe that Thatcher did anything but harm to the working people of this country – perhaps you were living in the booming South East at the time while she set about destroying the industries further North?
The current rate of inflation, whilst causing some concern is not high by the standards of the Seventies or Eighties. Only yesterday Bill Emmott, former editor of The Economist, warned against talking ouselves into a recession, and proffered the opinion that we may well have reached the peak of the inflationary pressure for now.
He is a man who was very highly regarded, even by such hawks as the Daily Telegraph in his time at The Economist, and his views offer a measured opinion of our current economic situation rather thean the politically-inspired hysteria of the tabloids – we would do well to take heed of them.
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“devon salopian” is seriously misguided if he thinks the Labour Government is socialist: It’s seriously right of centre!
Stable Government? Wake up and smell the coffee…..or herbal tea and your spliff!
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Andrew,
My recollection was that the three day week and the blackouts took place under Ted Heath’s government.
We may have future power cuts to look forward to under a future Tory administration too, but that will be because your great heroine undermined our future energy strategy for good by privatising the power utilities for short term greed and gain, and closed the coal industry out of spite towards the miners.
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If David Cameron ever became PM it would be a case of last one out of Britain please lock the door behind you
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After you Y Mab… I will welcome a Tory government over the utter shower/sorry excuse of an administration we have now, thank you. And it seems that with the polls showing around 45% of the British planning to vote Conservative, the country is more or less with me on this.
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harold you are just like your hero david cameron, attemting to throw dirt and insults, now i know i am winning the argument. you just concentrate who will be the new tory leader to lose the 2014 election!
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Harry Saxon Esq And the polls are always right are’mt they?
i seem to recall Lord David Steel of the Liberals thinking he was going to gain power
and
Kinnock as well
based on the polls 2 years before the elction.
The fact is if labour grant families 150 pounds for heating this year
Then labour will be virtually assured of being in power for the next 10 years
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not suprised with the cost of electricity, that’s why we need more wind turbines (see other blog) yet our crazy mp is blocking them!
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So if stuff costs more the government makes more VAT, then please please please will they not listen to the public and cut taxes in other areas (i suggest on fuel especially) because we need the money and its our money, give it back gordon please Darling the economy needs it now, not you!!
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Atleast the economy is ‘proofed’ to ride this storm thanks to the voters keeping the Tories greedy grubby hands off it for 12 years, in that time Gordon Brown has build a brilliant country with one of the best economies in the world, to give that up is a risk to much, we must not let the tories get their hands on the economy or they will just cut taxes for the uber rich and let the economy fall apart again
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better than the high inflation and high unemployment and high interest rate triple whammy that the incompetent tories gave us in the 90s
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the only thing that could get worse now is for the tories to get in
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Worm catcher, unfortunately what was supposed to be a Labour government has continued to reduce taxes on the ‘uber-rich’, though I accept not to the windfall extent that the Tories did so shamefully.
Labour has done well by the rich, well by the very poor, and not so well by the rest of us – I would sooner see some restraint placed upon the obscene pay rises to ‘City’ types rather than a constraint upon typically quite low-paid public sector workers, whose pay isn’t responsible for the current inflationary pressures anyway.
We mustn’t forget that the latest near-recession was caused by the unfettered greed and irresponsibility of global capitalism. Whilst the current Labour government has done diappointingly little to tackle this, we do have at least some protection for workers in a minimum wage, working hours protection etc.
If the Tories get in on a protest vote, then we should expect even fewer constraints on global capitalism, more British jobs going abroad, more current British jobs becoming subject to ‘sweatshop’ conditions, higher inflation, higher unemployment and an even more difficult time for us all.
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who cares about inflation really, its a temporary phenomenon that gets over hyped, it will go down as we spend less, not a crises
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atleast its not as bad as when the tories were in
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yah yah we told you loonie lefties could not run the economy, ha ha I hope it gets much worse then you’ll turn to the thatcher policies again, come on inflation, do you worst, ever extra point of inflation means more seats for Conservatives who will sort out this mess by slashing taxes, getting rid of the NHS, and helping those poor banks and energy companies to be more profitable again
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