UK inflation slowed

UK inflation slowed Significantly in June, coming in below expectations at 7.9% annually.

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Economists polled by the relevant news agencies had expected an annual rise in the main consumer price index by 8.2%, after a higher-than-expected reading of 8.7% for May 2023, but annual price increases still exceed the Bank of England's target of 2%.

On a monthly basis, core CPI rose 0.1%, below expectations of 0.4%, and core inflation - which excludes volatile energy, food, alcohol and tobacco prices - held steady at 6.9% annually, but fell from a 31-year high of 7.1%. since two months ago.

A source said that the National Statistics Office said that the decline in car fuel prices contributed to the largest decline in the monthly change at the annual average of the consumer price index. Food prices rose in June this year, but at a lower rate than June last year.

Inflation is a constant suffering.

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The UK has suffered from persistently high inflation, which the government and the Bank of England have warned could become entrenched in the economy, as the cost of living crisis deepens, the labor market tightens and wage prices increase.

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Bank of England Governor Andrew Bailey and UK Finance Minister Jeremy Hunt told an audience in the City of London earlier this month that high wage settlements were hurting their efforts to contain inflation.

The Organization for Economic Co-operation and Development predicted last month that the UK would experience the highest level of inflation of all advanced economies this year, with a headline annual rate of 6.9%.

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Efforts by the Bank of England

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The Bank of England carried out a massive 50 basis point increase in interest rates last month, the 13th in a row, as the Monetary Policy Committee struggles to rein in inflation.

And after the UK's key interest rate rose from 0.1% to 5% over the past 20 months, markets are pricing in another solid half-point increase to 5.5% at the August MPC meeting.

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Source: - news agencies