United Kingdom: Inflation plunges to lowest level since April in July
Consumer prices fell a seasonally-adjusted 0.02% in July over the previous month, contrasting June’s 0.50% rise. July’s result marked the sharpest fall in prices since January. The figure was largely due to plunging prices for recreation and culture.
Inflation fell to 2.0% in July from June’s 2.5%. July’s reading marked the lowest inflation rate since April. Annual average inflation was unchanged at June’s 1.0% in July. Core inflation fell to 1.8% in July, from the previous month’s 2.3%.
Despite July’s dip, our panelists see inflation rising back above the Bank of England’s 2.0% target by the end of the year, which could put pressure on the Bank of England to dial back its monetary stimulus.