Gas and Electricity Bills and the fact that they did not rise from August, 2009 has stabilised UK Inflation for September, 2009. Read More: September Inflation Latest.

But there were further large downward pressure on UK inflation from:

UK Inflation - Food and non-alcoholic beverages: Prices fell overall by 0.9 per cent between August and September 2009 compared with 0.3 per cent a year ago. The largest effect came from meat, with average prices falling by 1.2 per cent this year but rising by 0.8 per cent a year ago. There was a small downward effect from fruit, particularly from bananas, and a small upward effect from mineral waters, soft drinks and juices.

UK Inflation - Restaurants and Hotels: Prices were largely unchanged this year but rose a year ago. The downward effects came from restaurants and cafes, and from accommodation services where the price of hotel accommodation fell this year but rose a year ago.

UK Inflation - Recreation and Culture: The effect came mainly from recording media (particularly pre-recorded DVDs) and, to a lesser extent, from games, toys and hobbies. Partially offsetting these effects were small upward pressures from photographic equipment where prices of digital cameras rose this year but fell a year ago, and from books where prices of non-fiction hardback books rose this year but were little changed a year ago.

UK Inflation: Transport Costs Affect CPI

The largest upward pressure affecting the change in the CPI annual rate came from transport, in particular from fuels and lubricants and second-hand cars where prices rose between August and September 2009 but fell a year ago. The average price of petrol rose by 2.4 pence per litre this year to stand at 106.2 pence, compared with a fall of 1.7 pence a year ago. Diesel prices rose by 2.5 pence per litre this year compared with a fall of 2.3 pence a year ago.

Partially offsetting these upward pressures were downward effects from sea and air transport where seasonal price reductions were larger than a year ago.
There was also a large upward pressure from clothing and footwear where prices rose by more than a year ago across a range of items.

In the year to September, 2009, RPI annual inflation fell by 1.4 per cent, compared with a fall of 1.3 per cent in August. The main factors affecting the CPI also affected the RPI, however the different methods used to measure the price of new cars in the CPI and RPI resulted in a larger upward contribution to the RPI (compared with the CPI) from the purchase of vehicles.

As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate in August, at 1.6 per cent, was above the provisional figure for the European Union as a whole of 0.6 per cent.

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