UK inflation falls during August
This month’s Consumer Price Index (CPI) update shows that the 12-month inflation rate fell to 0.5% in August 2020, down from 1.1% in July 2020. Reduced prices in restaurants as a result of the Eat Out to Help Out Scheme resulted in the largest downward contribution (0.44 %) to the index, with airplane prices also falling. This leaves the 12-month inflation rate at its lowest level since 2015. Food and drink prices also fell compared to this time last year, although August prices were 0.1% up on July. Analysis by the Food Foundation of fruit and vegetable retail prices using CPI data, found that the price of vegetables fell by 1.44% between July and August with fruit prices also slightly down (0.11%). Exceptions included the price of apples and pears which rose by 5% and 11.56% respectively from July to August. The price of tinned tomatoes, which rose during lockdown following shortages caused by soaring demand and supply issues in Italy, fell by 3.77%, – the first fall in price since March.
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