View more on these topics

UK inflation down slightly to 2.8%

CPD-Centre-Sign-Up-Border-480.jpg

Inflation fell slightly in the UK during July, the latest figures from the Office for National Statistics show.

The consumer prices index rose by 2.8 per cent in July, down from the 2.9 per cent recorded in June. The fall in inflation was driven by declines in the price of air fares, plus movements in the recreation and clothing sectors.

The falls were partially offset by prices rises in petrol and diesel.

In addition, the retail prices index – which is no longer an official national statistic – fell from 3.3 per cent to 3.1 per cent.

Investors are closely watching inflation data after Bank of England governor Mark Carney said he would not consider lifting interest rates until the unemployment rate falls to 7 per cent – unless the outlook for inflation deteriorates or risks to financial stability emerge.

IHS Global Insight chief UK and European economist Howard Archer says: “Looking ahead, consumer price inflation may yet touch 3 per cent in the near term, but it should start heading gradually down towards the end of the year.”

Capital Economics UK economist Martin Beck says: “Although there are growing signs of economic recovery, we think the degree of slack in the economy will help push down CPI inflation close to the [monetary policy committee] 2 per cent target by the end of the year.

“The rationale for the forward guidance announced by the MPC last week just got a bit stronger.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com