The latest ONS inflation data offers key insights into consumer price trends, highlighting the role of women’s sportswear in moderating inflation.
- Inflation rates remained static, with the CPIH rising by 2.8% and the CPI by 2%, consistent with the previous month.
- A significant drop in clothing and footwear prices was noted, with a 1.2% decrease from May to June 2024.
- Women’s sports shorts and leggings played a substantial role in the reduced inflation of clothing and footwear.
- Economic influences such as falling energy prices and competitive retail environments contributed to broader price stability.
The Office for National Statistics (ONS) recently released inflation data indicating that both the Consumer Prices Index, including owner occupiers’ housing costs (CPIH), and the Consumer Prices Index (CPI) remained unchanged from May to June 2024, at 2.8% and 2% respectively. This marks a period of relative stability in consumer price inflation.
In the realm of clothing and footwear, notable price decreases were observed. These goods, particularly women’s sports shorts and leggings, were identified as significant contributors to the reduced inflation rate. Prices in this category decreased by 1.2% on a monthly basis from May, indicating a substantial impact from these items. The ONS report highlighted a notable drop in prices primarily driven by these goods.
Over the past year leading to June 2024, clothing and footwear prices rose by 1.6%, compared to a more substantial increase of 3% in the year to May 2024. This demonstrates the moderating effect women’s sportswear has on overall price trends within this sector. The ONS pointed to previous strong growth in sales of women’s sports shorts, leggings, and girls’ fashion tops, which saw double-digit growth last year, emphasizing their influence.
Further economic factors such as a decline in energy prices and the appreciation of the pound have also assisted in stabilizing retail prices. The British Retail Consortium (BRC) noted that intense competition among retailers has helped reduce prices for various goods, including essentials like pasta and margarine. Falling prices in clothing and footwear reflect this trend as well, supported by the BRC’s insights about the market dynamics.
Kris Hamer, the BRC’s director of insight, remarked on the benefits of these price reductions to households, pointing out that the decrease in shop price inflation is at its lowest since October 2021. Retailers’ strategic investments in operations and supply chain management were credited with achieving these lower prices, underlining the multifaceted approach required to maintain economic balance.
The current stability in inflation rates is strongly supported by strategic retail and economic factors, with women’s sportswear playing a key moderating role.
