In August, the restaurant and hotel sectors made a significant contribution to the reduction in consumer price inflation, which dropped to 8.3% from 9.6% in July. According to the Office for National Statistics (ONS), this represents the lowest rate since May 2022.
Prices within this industry decreased by 0.1% from July to August 2023, in contrast to a 1% increase during the same period the previous year. The decrease in the inflation rate can be attributed to lower prices for accommodation services, which declined this year but had risen a year ago.
This month, overall inflation continued to decelerate, as per data from the ONS. In August, the general consumer price inflation stood at 6.7%, down from 6.8% in July.
The moderation in the annual inflation rates for August 2023 primarily stemmed from decreases in prices for food and non-alcoholic beverages, restaurant and hotel services, and recreation and culture. However, these declines were partly offset by price increases in the transport sector, as well as housing and household services.
Specifically, food and non-alcoholic beverage prices rose by 0.3% between July and August 2023, compared to a 1.5% increase during the same period in the previous year. This led to a reduction in the annual rate to 13.6% in August 2023, down from 14.9% in July. It's noteworthy that in March 2023, there was a recent high of 19.2% in annual inflation, the highest observed in over 45 years.