Inflation in United Kingdom
United Kingdom - Inflation
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.
FocusEconomics Consensus Forecast panelists expect inflation to average 0.8% in 2020, down 0.1 percentage points from last month’s forecast, and 1.4% in 2021.
United Kingdom - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.0||0.7||2.7||2.5||1.8|
5 years of economic forecasts for more than 30 economic indicators.
United Kingdom Inflation Chart
Source: Office for National Statistics (ONS).
United Kingdom Facts
|Bond Yield||0.83||-3.04 %||Jan 01|
|Exchange Rate||1.33||-0.35 %||Jan 01|
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July 15, 2020
Consumer prices rose a seasonally-adjusted 0.11% in June over the last month, picking up from May's 0.01% rise.
July 14, 2020
Industrial output increased 6.0% month-on-month in seasonally-adjusted terms in May, contrasting April's 20.2% decrease.
July 14, 2020
GDP increased 1.8% month-on-month in seasonally-adjusted terms in May (April: -20.3% mom), supported by recoveries in industrial production and construction.
July 1, 2020
According to the Nationwide Building Society (NBS), house prices in the United Kingdom fell 1.4% month-on-month in June, coming after May’s 1.7% decline.
June 23, 2020
The IHS Markit/CIPS UK services Purchasing Managers’ Index (PMI) rose from 29.0 in May to 47.0 in June, but remained in contractionary territory.