The defence inflation statistic measures the average change in pay, and prices of goods and services, making up the defence budget, with quality and quantity held constant.
This statistical notice presents estimates of defence inflation for financial years 2005/06 to 2011/12.
- Defence inflation was 3.4% in 2011/12.
- Defence inflation averaged 3.7% over the period 2005/06 to 2011/12.
- In 2011/12, inflation in the GDP deflator was 2.4% and inflation in RPIX (a widely accepted proxy for UK general inflation) was 4.9%. Defence inflation has been higher than the GDP deflator and RPIX for five out of the seven years between 2005/06 and 2011/12. In 2010/11 and 2011/12 defence inflation was higher than the GDP deflator, but lower than RPIX.
- Inflation in defence contract expenditure was 3.4% in 2011/12.
- Inflation in defence labour cost expenditure was 3.4% in 2011/12 – inflation in civilian labour costs was 1.3%, and inflation in military labour costs was 3.9% in 2011/12.
- Inflation in Cash Offices was 1.7%, driven by the inflation rates affecting US Dollar and Euro payments, and movements in the exchange rates of these currencies against Sterling.
DASA welcome feedback on our statistical products. If you have any comments or questions about this publication or about DASA statistics in general, you can contact us as follows:
Telephone: DASA WDS on 020 780 78792
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Release date : 30 January 2014