United Kingdom: Inflation increases in June but remains well below the Bank of England’s target
Consumer prices rose a seasonally-adjusted 0.11% in June over the last month, picking up from May’s 0.01% rise. June’s result marked the sharpest increase in prices since February. The acceleration was broad-based, with greater price pressures for recreation and culture, transportation, and housing and utilities.
Inflation came in at 0.6% in June, which was up from May’s 0.5%. However, inflation remained well below the Bank of England’s 2.0% target. Meanwhile, the trend pointed down mildly, with annual average inflation coming in at 1.4% in June (May: 1.5%). Core inflation rose to 1.4% from May’s 1.2%.
Inflation is seen remaining notably below the Bank of England’s target this year on weak activity and low fuel prices, notwithstanding recent sterling weakness.