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In the spring of 2024, in the spring of 2024, the price label in the bowls in the grocery stalls on East Street Market in London, UK.
Bloomberg | Bloomberg | Gets the image
In June, the UK’s annual level of inflation reached a hot than expected, 3.6%, according to the National Statistics Office (ONS) on Wednesday.
Economists interviewed by Reuters expected inflation to reach 3.4% in twelve months by June, after reached 3.4% in May.
June main inflation, which eliminates more volatile energy, food, alcoholic and tobacco prices, increased by 3.7%, which compared to 3.5% for twelve months before May.
The British pound increased by almost 0.2% to the dollar up to $ 1.3406 after the data is released.
“Inflation was marked in June, which was mainly traveling for automotive fuel prices, which fell only compared to a much larger decline at this time last year,” commented the data that the chief economist in ONS.
“Inflation of food prices has increased in the third consecutive month to the highest annual rate since February last year. However, it remains much lower than the peak in the early 2023,” he added.
UK Finance Minister Rachel Rivz said the data showed that “workers still struggled with life costs” and stated that the government should do more work to help ease consumer pressure.
Inflation data will be carefully observed by the Bank of England as it is trying to determine the interest rate trajectory amid stubborn high inflation and insufficient economic growth.
In inflation, central banks usually decide to maintain a higher key interest rate to stimulate more savings and less costs to slow down prices. On Wednesday, the low Britain-British data showed that the economy unexpectedly declined again in May-also causing anxiety for Boe.
Thus, economists expect Boe politicians to reduce rates by 25 basic points at the next meeting in August.
“While price rising remains much higher than the goal, the UK economy is in the second month in May, means that the bank will probably view volatility in this inflation reading and continues to decline in August,” said the Adam Deast economist on Wednesday.
“Data release for tomorrow’s salary, the last large issue of data before the next IPC meeting, can cause the bank to support the economy that is increasingly looking so that it needs rise.”
