Inflation Aug: CPI up to 4.7%. RPI down to 4.8%

Milarky

http://www.statistics.gov.uk/cci/nugget.asp?ID=19

Retail Prices Index (RPI) inflation fell to 4.8 per cent in August, down from 5.0 per cent in July. The main factors affecting the CPI also affected the RPI. Additionally there was a large downward contribution from housing where the effect came mainly from mortgage interest payments and depreciation. Last year most lenders passed on a quarter point increase in the Bank rate which led to an increase in average mortgage interest payments whereas this year the Bank rate was unchanged.

..implies that the effect of a one quarter point 'reduction' (from last increase in BOE a year ago not being repeated) is a 0.5% reduction in RPI - being the difference in the movement of RPI to CPI this month. 'Depreciation' must be an interesting effect however...

RPIX inflation – the all items RPI excluding mortgage interest payments – was 5.2 per cent in August, down from 5.3 per cent in July.