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Inflation in the UK cooled more quickly than expected in June, figures from the Office for National Statistics showed on Wednesday.
Annually, consumer prices rose by 7.9% in June, cooling from an 8.7% jump in May. June’s reading was lower than market forecasts of 8.2%, as cited by FXStreet.
‘The easing in the annual inflation rates in June 2023 principally reflected price changes in the transport division, particularly for motor fuels. There were also notable downward effects from food and non-alcoholic beverages, furniture and household goods, and restaurants and hotels,’ the ONS said.
There were no large offsetting upward contributions to the change in the rate, it added.
On a monthly basis, UK consumer prices rose by 0.1%, compared to a 0.7% rise in May. The increase was lower than market expectations of a 0.4% rise.
Core inflation - excluding energy, food, alcohol, and tobacco - unexpectedly cooled to an annual rate of 6.9%. It had been expected to remain unchanged from May’s reading of 7.1%.
Separately, the ONS reported that UK producer prices fell in June.
Producer input prices fell 1.3% on a monthly basis in June, compared to the upwardly-revised fall of 1.2% in May. June’s producer price decline was chunkier than the market forecast of a 0.3% fall.
Annually, producer input prices fell 2.7%, having risen by a downwardly-revised 0.4% in May. They had been expected to fall by 1.6% in June.
May’s producer input prices were initially reported as a 1.5% decline from April. They were first thought to have risen 0.5% annually.
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