London, Aug 14 (IANS) Britain’s Consumer Price Index (CPI) rose by 2.2 per cent in the 12 months to July, official data showed on Wednesday.
The figure was up from 2.0 percent in both May and June 2024, according to the Office for National Statistics (ONS). July’s CPI reading came in below expectations of a rise to 2.3 per cent from economists polled by Reuters.
“Inflation ticked up a little in July as although domestic energy costs fell, they fell by less than a year ago,” said ONS chief economist Grant Fitzner. “This was partially offset by hotel costs, which fell in July after strong growth in June,” reported Xinhua news agency
Core CPI, excluding energy, food, alcohol and tobacco, rose by 3.3 percent in the 12 months to July 2024, down from 3.5 percent in June, and the CPI services annual rate fell from 5.7 percent to 5.2 percent. Falls in both rates will offer significant relief to the Bank of England (BoE)
“The first rise in inflation in seven months may sound like bad news, but in fact the small size of the increase — and the sharp fall in services inflation that lies behind it — is good news for both consumers and policymakers,” said Lalitha Try, economist at the Resolution Foundation.
Leading think tank the National Institute of Economic and Social Research (NIESR) said Britain’s inflation was expected to continue hovering close to, but above, the BoE’s 2-percent target in the coming few months, before stabilizing in early 2025.
However, strong wage growth, coupled with falling but still high core and services inflation, may mean the BoE could exercise some caution concerning further rate cuts, said the NIESR.
On August 1, the BoE lowered the benchmark interest rate to 5 percent from 5.25 percent, the first cut in four years.
–IANS
as/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
