Furniture prices fell in June as overall inflation remained unchanged.
According to the latest Office for National for National Statistics (ONS) data, the Consumer Prices Index (CPI) rose by 2.0% in the 12 months to June 2024, the same rate as the 12 months to May 2024. On a monthly basis, CPI rose by 0.1% in June 2024, the same rate as in June 2023.
The annual rate in June 2024 has not been lower since April 2021, when it was 1.5%.
The largest upward contribution to the monthly change in both CPIH and CPI annual rates came from restaurants and hotels, where prices of hotels rose more than a year ago; the largest downward contribution came from clothing and footwear, with prices of garments falling this year having risen a year ago.
Furniture and furnishing prices fell by 2.2% in June, down from a decline of 2.8% in May, while down from a 5.9% rise compared to the same month last year.
The retail price of household furniture decreased by 2% in the month, down from a fall of 2.7%, while down from 6.2% last year.
Garden furniture prices fell 19.5%, down from 22.4% on last month and down from a rise of 3.4% compared to last year.
Carpets and other floorcoverings prices fell 0.9%, compared to fall of 0.3% the previous month, while lower than the 9.1% rise last year.
Other household textile prices, including furnishings fabrics, curtains and bedding, saw prices rise by 0.9%, down from 1.3% the previous month, while down from 3.8% on last year.
Meanwhile, Producer Price Inflation (PPI) saw the rate of furniture output prices, factory gate, rise 1.8% in June on the same month in the previous year. The rate was lower than the rise of 2% in May. Furniture input prices, material cost of production, were down -0.1% in June on last month, which had risen 0.5% during May. There was no data reflecting an annual comparison.
Producer input prices fell by 0.4% in the year to June 2024, up from a revised fall of 0.7% in the year to May. Producer output (factory gate) prices rose by 1.4% in the year to June 2024, down from a rise of 1.7% in the year to May. On a monthly basis, producer input prices fell by 0.8%, while output (factory gate) prices fell by 0.3% in June 2024.
Commenting on June’s inflation data, ONS Chief Economist Grant Fitzner said: “The inflation rate was unchanged in June. Hotel prices rose strongly while second-hand car costs fell but by less than this time last year. However, these were offset by falling clothing prices, with widespread sales driving down their cost.
“Meanwhile, the cost of both raw materials and goods leaving factories fell on the month, though factory gate prices remain above where they were a year ago.”
Responding to the latest CPI inflation figures, Kris Hamer, Director of Insight of the British Retail Consortium, said: “While headline inflation remained at 2.0%, households will benefit from falling inflation rates in retail, with Food and Clothing & Footwear both dropping compared to last month. Falling energy prices and a stronger pound combined with fierce competition between retailers are helping to bring down prices for many goods, including essential items like pasta and margarine. A drop in prices could also be seen across Clothing and Footwear, with prices falling 1.2% on the previous month, and even more for children’s clothes.
“While we should celebrate the end of high inflation, which has dogged the UK for two years, many of the factors that caused it lurk in the background. Energy prices have fallen from peak, but the UK’s reliance on imported energy remains a vulnerability. Similarly, the impact of climate change on harvests at home and abroad, as well as rising geopolitical tensions, could increase commodity prices and translate into higher inflation in the future.”
