United Kingdom: Inflation inches down in July
August 13, 2013
In July, consumer prices were flat compared to the previous month, which followed June's 0.2%. The reading was in line with market expectations. Higher prices for transport as well as for healthcare were the most important drivers behind July's flat reading.
Annual inflation inched down from 2.9% in June to 2.8% in July. Meanwhile, annual average inflation inched up from 2.6% in June to 2.7% in July.
In its latest inflation report from June, the Bank of England projects inflation to 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%.
Author: Armando Ciccarelli, Head of Data Solutions