Three national well-being indicators in one report

Consumer Prices, Factory Gate Prices and House Price Growth are all analysed in well-being figures from the Office of National Statistics (ONS). The March 2014 well-being report includes the following insights into the state of the nation’s economic health:

The Consumer Prices Index (CPI)

The CPI grew by 1.7% in the year to February 2014, down from 1.9% in January. The largest contribution to the fall in the rate came from transport (principally motor fuels) with other smaller downward effects from the housing & household services and clothing & footwear sectors. These were partially offset by upward contributions from furniture & household goods and recreation & culture. CPIH grew by 1.6% in the year to February 2014, down from 1.8% in January. RPIJ grew by 2.0%, down from 2.1% in January.

House Price Growth

UK house prices increased by 6.8% in January 2014 compared with a year earlier, up from 5.5% in December 2013. House prices grew by 7.1% in England, 6.9% in Wales, 1.4% in Scotland and 2.7% in Northern Ireland.

House price growth is increasing strongly across some parts of the UK, with prices in London again showing the highest growth. Annual house price increases in England were driven by rises in London (13.2%), the South East (7.1%) and the West Midlands (5.3%).

Excluding London and the South East, UK house prices increased by 3.8% in the 12 months to January 2014.

On a seasonally adjusted basis, average house prices increased by 0.6% between December 2013 and January 2014. In January 2014, prices paid by first-time buyers were 7.6% higher on average than in January 2013. For owner-occupiers (existing owners), prices increased by 6.5% for the same period.

Factory Gate Prices

The output price index for goods produced by UK manufacturers (factory gate prices), rose 0.5% in the year to February, compared with a rise of 0.9% in the year to January. Factory gate prices saw no movement between January and February, compared with a rise of 0.3% between December 2013 and January 2014.

Core factory gate prices, which exclude the more volatile food, beverages, tobacco & petroleum products, rose 1.1% in the year to February, compared with a rise of 1.2% in the year to January. The overall price of materials and fuels bought by UK manufacturers for processing (total input prices), fell 5.7% in the year to February, compared with a fall of 2.9% in the year to January.

Total input prices fell 0.4% between January and February, compared with a fall of 0.9% between December 2013 and January 2014.