The rise in the Retail Price Index (RPI) has been causing some concern to both consumers and policy-makers. Within the aggregate figures, some components are showing VERY large rises – and others much more modest. If you’ve just paid your fuel bill or filled up the car, you might be forgiven for thinking that the real rate of inflation is well over 5%.
Top 5 RPI items showing inflation
The items in the RPI basket showing sharp increases are oil and other fuels, vehicle tax and insurance, imported lamb, women’s outerwear and fresh fish. Perhaps the continued increase in oil and other fuels is driving up the price of imports and like lamb and fish. Women’s outerwear however is more of an oddity – the prices are probably being driven by the ONS changing the way of measuring this item.
Top five RPI items showing deflation
The items in the RPI showing the greatest deflation are CDs and tapes, cooking oils and fats, fresh milk, purchase of motor vehicles and toys, photographic and sports good in that order.
“toys, photographic and sports goods” is that one category? Well I suppose cameras etc are toys as far as the consumer market is concerned, butit still seems strange to lump all these things together.