UK Inflation falls below 8% for first time since April 2022

July 19, 2023 (MLN): UK’s inflation rate eased more than expected to the lowest level in more than a year, with the Consumer Prices Index (CPI) clocking in at 7.9% in June 2023, down from 8.7% in May, according to the latest data issued by National Statistics.

On a monthly basis, CPI rose by 0.1% in June 2023, compared with a rise of 0.8% in June 2022.

Meanwhile, the CPI including owner occupiers' housing costs (CPIH) rose by 7.3% in the 12 months to June 2023, down from 7.9% in May.

On a monthly basis, CPIH rose by 0.2% in June 2023, compared with a rise of 0.7% in June 2022.

Falling prices for motor fuel led to the largest downward contribution to the monthly change in CPIH and CPI annual rates, while food prices rose in June 2023 but by less than in June 2022, also leading to an easing in the rates.

There were no large offsetting upward contributions to the change in the rate.

Core CPIH (excluding energy, food, alcohol, and tobacco) rose by 6.4% in the 12 months to June 2023, down from 6.5% in May, which was the highest rate for over 30 years; the CPIH goods annual rate slowed from 9.7% to 8.5%, while the CPIH services annual rate was 6.3%, unchanged from May.

Core CPI (excluding energy, food, alcohol, and tobacco) rose by 6.9% in the 12 months to June 2023, down from 7.1% in May, which was the highest rate since March 1992; the CPI goods annual rate slowed from 9.7% to 8.5%, while the CPI services annual rate eased from 7.4% to 7.2%.

Copyright Mettis Link News