Clothing prices were up by 6% between August and September

Clothing prices were up by 6% between August and September

UK inflation increased in September at the highest rate since November 2014 due to rising clothing and motor fuel prices, which were partially offset by a fall in air fares and food prices.

The latest figures from the Office for National Statistics (ONS) show UK consumer price inflation rose 1% in the year to September 2016, compared with a 0.6% rise in the year to August.

Overall, clothing prices were up by 6% between August and September this year compared with a rise of 3.3% between the same two months a year ago. The upward effect came principally from women's outerwear.

Whilst the rise is relatively large historically, the ONS says there are factors to take into account when considering whether this is a result of sterling depreciation following the EU referendum result. 

A rise in clothing prices in September is in line with normal trends and the comparatively large increase this year follows a sustained fall in prices between March and July, with a relatively small increase into August. Additionally, whilst the depreciation of sterling is likely to increase the cost of importing goods and outsourcing production, there are reports of businesses having measures in place to protect against exchange rate changes in the short-term, the ONS says.

Year-on-year, clothing and footwear prices fell 0.08% in September, the data shows, unmoved from the month before. 

"CPI inflation has risen to its highest for nearly two years, though it remains low by historic standards," says Mike Prestwood, head of inflation for ONS. "The prices paid by manufacturers for raw materials were unchanged over the month and there is no explicit evidence the lower pound is pushing up the prices of everyday consumer goods."