Utility costs push inflation up to 2.2%

The Consumer Prices Index including owner occupiers' housing costs (CPIH) increased by 3.1% in the 12 months to July 2024, up from 2.8% in June 2024, according to the latest ONS consumer price inflation data published this morning (14 August).

The ONS attributed the rise to gas and electricity costs, which "fell by less than they did last year".

In the 12 months to July 2024, clothing and footwear prices increased by 2%, up from a rise of 1.6% in the year to June 2024, which was offset by falling sportswear prices.

British Retail Consortium director of insight, Kris Hamer, said: "With headline inflation showing signs of rising further, retailers face the prospect of another large rise in business rates next year, which are based on September inflation rates.

"This penalises the retail industry, as retail products currently have generally lower inflation levels than the headline figure on which business rates rises are based.

"The Government should buy into retail by ending the 14 years of Conservative business rates rises, which have seen the multiplier increase by a third since 2010, harming the viability of many high street stores across the country."