16 October 2001, 12:37 UK Sept all-items RPI up 1.7 pct yr-on-yr; RPI-X up 2.3; RPI-Y up 2.8
LONDON (AFX) - The UK retail price index rose 0.3 pct in September
for a 1.7 pct year-on-year increase, National Statistics said.
The AFX News median of analysts' forecasts was for July RPI to have
risen 0.3 pct on the month for a 1.7 pct year-on-year hike.
NS said a small upward efect on the all items 12-month rate came
from price changes for tobacco, household goods and personal goods and
services (chemist goods).
The biggest downward effect arose from price changes for motoring
expenditure. This was mainly due to changes in petrol and oil prices,
which had fallen this September compared with increases a year ago.
The annual rate of petrol and oil stood at -6.8 pct, down from -4.2
pct last month.
Another large downward effect was due to changes in housing costs,
principally due to the mortgage interest payments component, as
interest rates fell in September, following the base raate cut by the
Bank of England on August 2.
Other large downward effects came from changes in prices of
entertainment and recreation costs, clothing and non-seasonal food.
Underlying inflation RPI-X (RPI excluding mortgage interest
payments) -- the measure of inflation targeted by the Bank of England
-- was up 0.5 in September for a year-on-year increase of 2.3 pct.
This compares with expectations for a 0.4 pct month-on-month rise
and a 2.3 pct annual gain.
September RPI-Y, RPI excluding mortgage interest payments, indirect
taxes and excise duties, was up 0.5 pct on the month, for a
year-on-year increase of 2.8 pct.
RPI-Y was forecast to have risen 0.4 pct on the month for a 2.7 pct
year-on-year increase.
The EU harmonised consumer price index (HICP) rose to 107.6 in
September from 107.3 in the previous month, leaving the annual rate of
increase at 1.3 pct, down from 1.8 in August.
A further breakdown of the data revealed that goods prices
increased by 0.5 pct over the month, for a 0.5 pct year-on-year rise.
In contrast, the price of services, which were up 0.3 pct on the
month, rose 3.9 pct on a year-on-year basis.
This month saw the introduction of the Rossi index, an all-items
less rents, mortgage interest payments, council tax and depreciation
costs.
NS said state pensions and many other benefits are usually uprated
in line with the 12-month rate in September of the all items index
(RPI).
Income-related benefits (eg.Job Seekers Allowance, Housing Benefit
and Family Credit) are usually uprated in line with September's
12-month rate of the Rossi index, it added.
The Rossi index for September stood at 166.6, compared with 163.8 a
year ago.
The Rossi annual rate stands at 1.7 pct against 1.6 pct last
September.
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