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UK inflation rate slows to 6.8% in July
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LONDON (Reuters) – British annual consumer price inflation slowed to 6.8% in July, figures from the Office for National Statistics showed on Wednesday.
LONDON (Reuters) – British annual consumer price inflation slowed to 6.8% in July, figures from the Office for National Statistics showed on Wednesday.
Economists polled by Reuters had forecast that the CPI rate in the 12 months to July would drop to 6.8% from June’s 7.9%, moving further away from October’s 41-year high of 11.1% but still far above the Bank of England’s 2% target.
The BoE said earlier this month that it expected inflation in July would fall to 6.8%.
The BoE is watching core inflation – which strips out volatile food and energy prices – and consumer services prices closely.
Core inflation remained at 6.9% in July, flat versus the June reading, and higher than expectations in the Reuters poll for a reading of 6.8%.
(Writing by William James, reporting by Andy Bruce and William Schomberg)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
The Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a basket of goods and services. It is a key indicator of inflation.
Core inflation is a measure of the long-term trend in the price level, excluding items that face volatile price movement, particularly food and energy prices.
The Bank of England's inflation target is set at 2%. This target aims to maintain price stability and support economic growth.
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