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UK restaurants decrease rate of inflation, ONS reveals

The contribution from restaurants and hotels to the CPI fell to 0.34% in September 2021, down from 0.65% in August

The restaurant and hotel industry made the largest downward contribution to the rate of inflation in the 12 months to September 2021, the Office for National Statistics (ONS) reveals.

The Consumer Prices Index (CPI) analyses the 12-month inflation rate between August and September 2021. According to ONS, restaurants and hotels decreased the rate of inflation in September 2021 by 0.31%.

Reportedly, 0.30% of this came from the catering services group which was “largely driven” by the end of the Eat Out to Help Out (EOHO) scheme. 

Part of the easing in the 12-month inflation rate for September 2021 is due to the price increases last year following the end of the EOHO scheme.

Additionally, the contribution from restaurants and hotels fell to 0.34% in September 2021, down from 0.65% in August. This was the largest contribution that this division had made to the CPIH annual rate National Statistic series, which began in January 2006.

However, although catering services saw a “modest” rise in prices of 0.3% in September 2021, the price rises last year were larger at 4.1%.

Prices also fell in the month to September 2021 by 0.2%. However, there was a greater fall in the same month last year at 0.7%, which has led to an upward contribution to the change in the 12-month inflation rate this year.

The upward movement was confined to the food group and was partially offset by non-alcoholic beverages, which pushed the CPIH annual rate down in September. 

Food and non-alcoholic beverages also made a large contribution to the change in the CPIH annual rate, increasing it by 0.04% to September 2021.

Mike Hardie, ONS Head of Prices, said: “Annual inflation fell back a little in September due to the unwinding effect of last year’s ‘Eat Out to Help Out,’ which was a factor in pushing up the rate in August. 

“However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year.”

He added: “The costs of goods produced by factories rose again, with metals and machinery showing a notable price rise. Road freight costs for UK businesses also continued to rise across the summer.”

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