The U.K Consumer Price Index measure of inflation has dropped to 7.9% YoY.
The figure is down from 8.7% in the year to May. Core inflation which strips out the more volatile items such as food and energy remained high at 6.9%, down from May’s 7.1%.
Falling prices for fuel led to the largest downward contribution to the monthly change in annual rates. There were also notable downward effects from food and non-alcoholic beverages, furniture and household goods, also restaurant and hotel prices dropped.
The inflation rate peaked at 11.1% in October 2022, with the ONS estimating that this was the highest rate since 1981.
The Bank of England was widely expected to raise the base rate from 5% to 5.5% on August 03rd, many experts have now revised their predictions to a smaller rise of a 1/4%, taking us to 5.25%.
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