United Kingdom: Inflation edges up in June
July 17, 2013
In June, consumer prices decreased 0.2% over the previous month, which represents the lowest figure recorded since January 2013. The print contrasts the 0.2% increase seen in May and slightly undershot market expectations of a 0.1% drop. The reading was mainly influenced by a decline in prices for clothing and footwear, as well as for food and non-alcoholic beverages.
Despite the lower monthly consumer price figure, annual inflation edged up from 2.7% in May to 2.9% in June. Annual average inflation for June remained stable over the previous month at 2.6%.
In its latest inflation report from May, the Bank of England projects that inflation will average 2.9% this year, before moderating to 2.5% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 2.8% in 2013, which is unchanged from last month's forecast. For next year, the panel forecasts inflation to average 2.4%.