Inflation In The UK Falls More Than Anticipated To A 15-Month Low Of 7.9%; Might Limit Interest Rate Hikes
The Uk inflation falls by more than what was anticipated to a 15-month low, as shown by official figures on Wednesday. This development may lighten the pressure on the Bank of England to increase rates of interest sharply in the upcoming months to the possible relief of struggling households.
The Uk inflation falls by more than what was anticipated to a 15-month low, as shown by official figures on Wednesday. This development may lighten the pressure on the Bank of England to increase rates of interest sharply in the upcoming months to the possible relief of struggling households.
The Office for National Statistics claimed that the inflation, as measured by the consumer prices index, has fallen to 7.9% this year to June from 8.7 percent in the previous year, whereas most economists had expected a more modest fall to 8.2%.
The statistics agency claimed that the fall in fuel prices was the most dominating factor behind the drop. Food price inflation pared back, too; however, they remained historically high.
Amid the decline, inflation is still a position that is essentially higher than the anticipated target of the Bank of England of 2%.
As a result, it is expected that the central bank will raise its main rate of interest further at its upcoming meeting planned in early August.
This is comforting news for homeowners that are in need of mortgage deals if the steep upward pressure over the mortgage rate starts declining.
Even though inflation has considerably headed down from its double-digit peak at the end of 2022, it is still a journey left for the British Government’s goal to bisect the inflation down to approximately 5% by the end of 2023.
“Inflation is falling and stands at its lowest level since last March, but we aren’t complacent and know that the high prices are still a huge worry for families and businesses,”
Treasury Chief Jeremy Hunt added after the numbers were released.
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