UK inflation data for June

The annual inflation rate in the United Kingdom was 3.6 % of expected in June, according to the data issued by the National Statistical Office (ONS) on Wednesday.

The economists of Reuters expected inflation to reach 3.4 % in the twelve months until June, after it reached 3.4 % in May.

The basic inflation in June, which excludes more volatile prices for energy, food, alcohol and tobacco, increased by 3.7 % annually, an increase of 3.5 % in the twelve months to May.

The British pound increased by approximately 0.2 % against the dollar, to $ 1.3406, after issuing data.

Richard Hayes, Acting Senior Economists on ONS, commented on the data: “The inflation in June has increased mainly due to the fuel prices that decreased slightly, compared to a much larger decrease at this time last year,” commented Richard Hayes, Acting Economist on ONS.

“Food prices have increased for the third month in a row to its highest annual rate since February last year. However, it is still much lower than the peak that was seen in early 2023.”

UK Finance Minister Rachel Reeves said that the data showed that “workers are still struggling with the cost of living” and said that the government has more work to help reduce pressure on consumers.

Inflation data will be closely monitored by the Bank of England, as it tries to determine the course of interest rates amid the rate of high -end inflation and faded economic growth.

In an inflationary environment, central banks usually choose to maintain a higher interest rate to encourage more spending and less spending in order to slow down prices. However, the low-growing environment in the UK-the latest data showed that the economy is unexpectedly shrinking again in May-is a concern for the England Bank.

As such, economists expect the policymakers of the Bank of England to reduce prices by 25 basis points in their next gathering in August.

“While price growth is still much higher than the goal, the British economy that is contracting for a month in a row in a row in May means that the bank is likely to search for volatility in reading this inflation and moving forward in prices in August,” Adam Dasi, PWC economist, said on Wednesday in the comments via e -mail.

“The issuance of tomorrow’s salary statements, which is the latest version of the data before the next MPC meeting, may raise the bank into effect to support the economy that appears to be increasingly needs an elevator.”