United Kingdom Inflation

United Kingdom

United Kingdom: Consumer prices post slight annual increase in July

August 18, 2015

In July, consumer prices dropped 0.2% over the previous month, which came in below the flat reading observed in June. The figure marked the first monthly drop in six months and reflected lower prices for food and non-alcoholic beverages as well as for transport.

Inflation inched up from a flat figure in June to 0.1% in July, thus reaching the highest level in six months. July’s reading overshot market expectations, which had inflation remaining stable at the previous month’s reading. Annual average inflation inched down from 0.6% in June to 0.5% in July, the lowest level on record.

In its latest inflation report, from February, the Bank of England projected that inflation will average 0.2% in 2015 and 1.5% in 2016. FocusEconomics Consensus Forecast panelists expect inflation to average 0.4% in 2015, which is down 0.1 percentage points from last month’s forecast. For 2016, the panel forecasts that inflation will average 1.6%.

Author:, Senior Economist

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United Kingdom Inflation Chart

United Kingdom Inflation July 2015

Note: Annual and monthly variation of consumer price index in %.
Source: Office for National Statistics (ONS) and FocusEconomics calculations.

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