UK inflation slows more than expected to 2%


UK inflation update

Due to the slowdown in the price growth of clothing, footwear and leisure goods, inflation in the UK slowed more than expected in July, but it is expected to pick up again for the rest of the year.

The price of consumer goods and services rose by 2% annually in July, which was lower than 2.5% According to data released by the National Bureau of Statistics on Wednesday, last month. The slowdown was slightly stronger than the 2.1% decline predicted by the Bank of England.

Yael Selfin, chief economist at KPMG UK, said: “The year-on-year decline in inflation last month masks the current strength of inflationary pressures within the UK economy.”

Due to the shortage of new models and increased demand, the price of used cars has risen sharply, partially offsetting the decline in clothing prices.

Jonathan Athow, deputy national statistician in charge of economic statistics at the National Bureau of Statistics of the United Kingdom, said: “In July, the inflation rate for a wide range of goods and services, including clothing, fell. After the industry resumed summer sales, the inflation rate has declined.”

He added that part of the decline this month came from products and services, such as travel abroad.

However, the decline in headline inflation in July is expected to be temporary.This Bank of England forecast The consumer price growth rate will rise to 3% in August and accelerate to a peak of over 4% in the fall.

As price pressures associated with the economy’s reopening after a few weeks of lockdown subsided, inflation is expected to return to the bank’s 2% target in about two years.



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