UK inflation rises in July; furnishing prices up

Furniture and carpet prices rose during July, while overall inflation also increased.

According to the latest Office for National for National Statistics (ONS) data, the Consumer Prices Index (CPI) rose by 2.9% in the 12 months to July 2026, up from 2.6% the previous month. On a monthly basis, CPI rose by 0.3% in July 2026, compared with a rise of 0.1% in July 2025.

Housing and household services, and furniture made the largest upward contributions to the monthly change in both CPIH and CPI annual rates; transport made the largest, partially offsetting, downward contribution.

For furniture, furnishings and carpets, the combined figure saw prices rise 1.5% in July, compared to its decline of -0.3% the previous month, while from last year, prices were up from its rise of 0.8%. Sectors within the category are detailed below.

Furniture and furnishing prices rose by 0.3%, compared to a fall of -1.7% the previous month, while down from a 0.6% increase compared to the same month last year.

Garden furniture prices fell by -12%, compared to a decline of -8.4% on last month, and from a rise of 5.5% compared to last year.

Carpets and other floorcoverings prices increased by 5.3%, compared to a rise of 4.8% the previous month, while up from a rise of 0.1% last year.

Other household textile prices, including furnishings fabrics, curtains and bedding, saw prices fall by -0.7%, compared to its fall of -1.2% the previous month, and from a rise of 1.4% on last year.

Producer Price Inflation (PPI) saw the rate of furniture output prices, factory gate, rise 2.5% in July on the same month in the previous year. Compared to the previous month, prices rose 0.07%. Furniture input prices, material cost of production, were up 4.2% on the same month last year, while up 0.1% from the previous month.

Producer input prices rose by 4.9% in the year to July 2026, down from a revised rise of 7.4% in the year to June. Producer output (factory gate) prices rose by 3.1% in the year to July 2026, down from a rise of 3.5% in the year to June. On a monthly basis, producer input prices fell by 1.7% and producer output (factory gate) prices rose by 0.2% in July 2026.

Crude oil provided the largest contribution to the fall in the annual inflation rate for input prices in July 2026, with prices falling by 18.0% on the month.

Commenting on the inflation figures for July, ONS Deputy Director for Prices Mike Hardie said: “Inflation rose in July, driven by a sharp increase in gas prices following this month’s change to the energy price cap. This was the largest rise in gas prices for almost four years.

“Other upward pressures included furniture prices falling by less than usual for this time of year, and also a smaller fall for clothing prices due to reduced discounting.

“The prices of raw materials and goods leaving factories slowed again, driven by a drop in the prices of crude oil and refined petroleum respectively.”

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