Hospitality inflation rate drops to 8.3%

This marks the lowest rate since May 2022, according the the Office for National Statistics (ONS).

Prices in the sector fell by 0.1% between July and August 2023, compared with a rise of 1.0% between the same two months a year ago.

The easing in the rate reflected a downward effect from accommodation services, where prices fell on the month this year but rose a year ago.

Overall inflation slowed again this month, with ONS data showing the overall consumer price inflation was 6.7% in August, down from 6.8% in July.

The easing in the annual inflation rates in August 2023 reflected notable downward effects from food and non-alcoholic beverages, restaurants and hotels, and recreation and culture but were partially offset by upward contributions from transport, and housing and household services.

Food and non-alcoholic beverage prices rose by 0.3% between July and August 2023, compared with a rise of 1.5% between the same two months a year ago.

This resulted in an easing in the annual rate to 13.6% in August 2023, down from 14.9% in July and a recent high of 19.2% in March 2023, which was the highest annual rate seen for over 45 years.