Inflation in the UK for the first time since 2017

  • Inflation in the UK for the first time since 2017
    Independent.t. E.
    Inflation in the U.S. last month rose, largely due to higher transport costs, new official data show.

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Inflation in the U.S. last month rose, largely due to higher transport costs, new official data show.

The consumer price index (CPI) increased by 2.5 PC in July, compared to 2.4 PC in June, for the first time was November 2017, according to Office for National statistics.

Mike hardy, head of inflation at the ons, said: “transport tickets and fuel, along with the often changeable prices games computer, drove up costs for consumers.

“On the other hand, there was a fall in the price of women’s clothing and shoes, as well as some financial services.”

Households were broken with the rising price of transport, as they went on summer vacation, with prices climbing 5.7 PC compared with the same month of the previous year.

Sterling was largely flat against the dollar and Euro after the news, holding steady at $1.27 and €1.12.

The retail price index (RPI) fell to 3.2 PC, compared with 3.4 PC in June, and lower than 3.5 PC economists had expected.

In the figure, the RPI will take a close look at the passengers and consumer groups, as it will be used by the Department of transport to calculate the annual increase in prices for rail tickets.

At the pump, gasoline prices fell by 0.8 p per month to 127.2 p per litre, while the price of diesel fuel decreased by 0.5 p to 131.6 p per litre.

The ONS said the price of fuels and lubricants showed “significant” growth over the period, jumping by as much as 26% from January 2016.

“Prices for fuels and lubricants is largely due to global oil prices, with some movements and reflects the impact of exchange rate because of its relatively high intensity of imports”, – reported in management.

Prices of clothing and footwear fell 0.4% in annual terms, which coincided with the summer period of sales in the main street, but the family was impressed with the increase in food and non-alcoholic beverages prices, which rose 2.3 PC.

Clothing prices fell by 3.7 PC month on month. However, there is no evidence of more goods for sale than in the previous year, reported in the management.

John Hoxworth, chief economist at PwC said that growth in household incomes will remain “subdued” over the next year.

“Given the recent weakening of the pound, inflation could remain sticky around this pace over the next few months, keeping real wage growth to a minimum,” he said.

Howard Archer, chief economic adviser to the ey club, described the inflation data as “disappointing but not surprising” for the family.

“Inflation should continue its moderate downward trend by the end of the year, helped by favorable consequences, the effect on import prices, a sharp fall of the pound after the referendum, leaving the UK weakened further,” he said.

Inflation in accordance with the decision of the Bank of England to raise interest rates to the highest level since 2009, putting more pressure on the cost of borrowing.

However, the Bank’s Governor mark Carney said that any future upgrades will be limited, suggesting that the Bank intends to mitigate any impact to the borrowers.

Forecast of the consumer price index including owners ‘housing costs’ (CPIH) – the ONS’ preferred measure of inflation remained at the level of 2.3 PC in July.

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