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retailParkStoresPrice inflation returned to the furniture retail sector in January as rate rises at the factory gate remained at a two-year high.


Furniture prices paid by consumers climbed 1.1 per cent in the year to January, according to inflation figures released yesterday by the Office for National Statistics.


The end of 2015 had seen the first fall in furniture prices in five months, with prices dropping 0.8 per cent in the year to December.


The overall Consumer Prices Index (CPI) rose by 0.3 per cent in the year to January 2016, compared with a 0.2 per cent rise in the year to December.


The main contributors to the rise in the rate were motor fuels, food, alcoholic beverages and clothing, with air fare prices partially offsetting the rise in the rate.


Furniture manufacturers’ prices remained higher than in the same month last year, with the Producer Price Index for furniture up 1.9 per cent in the year to January, the highest the category inflation rate has been in over two years.


Factory gate prices for all goods produced by UK manufacturers fell 1.0 per cent in the year to January 2016, compared with a fall of 1.4 per cent in the year to December 2015.


The overall price of materials and fuels bought by UK manufacturers for processing fell 7.6 per cent in the year to January 2016, compared with a fall of 10.4 per cent in the year to December.