UK Consumer Price Inflation Slows to 6.8% in July

16 Aug, 2023

UK Consumer Price Inflation Slows to 6.8% in July

In July, annual consumer price inflation in the UK decelerated to 6.8%, as indicated by data released on Wednesday by the Office for National Statistics.

Economists surveyed by Reuters had predicted that the Consumer Price Index (CPI) would register a 6.8% rate over the 12 months leading up to July, down from June's 7.9%. This shift further distanced the figure from the 41-year peak of 11.1% recorded in October, while still significantly surpassing the Bank of England's targeted 2% inflation rate.

The Bank of England had previously stated in the current month that it anticipated a drop in inflation to 6.8% for July. The central bank is closely monitoring core inflation, which excludes the impact of volatile food and energy prices, as well as consumer service prices.

Core inflation for July remained steady at 6.9%, matching the June figure and surpassing the 6.8% projection from the Reuters poll.