New Consumer Price Index (CPI) figures released today shows transport to have had a large effect on change over the past 12 months. CPI annual inflation in July 2010 stood at 3.1 per cent, down from 3.2 per cent in June 2010. Transport costs (particularly prices of secondhand cars and fuel) are the largest driver to the decrease in annual inflation between June and July 2010.
The price of second-hand cars fell this year but rose a year ago. The price increase of 3.0 per cent last year was a record for a June to July period and it was widely reported that a shortage of stock led to higher prices for second-hand cars during 2009. There was also a large downward effect from fuels and lubricants principally reflecting a fall of 0.7pence per litre in the price of petrol this year compared with a rise of 1.1 pence per litre a year
ago. There has been a small downward effect from rail transport and a partially offsetting upward effect from sea and inland waterway transport.
For more information see the Office of National Statistics bulletin