Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
In July, the annual inflation in the UK reached a hot than expected, 3.8%, according to the data published by the National Statistics Office (ONS) on Wednesday.
Economists interviewed by Reuters expected inflation to reach 3.7% in twelve months before July, after it took up to 3.6% in June, exceeding the forecasts.
The July main inflation, which eliminates more volatile energy, food, alcoholic and tobacco prices, increased by 3.8%, which compared to 3.7% in twelve months to June.
Inflation increased the consumer price index to the highest annual rate since the beginning of last year’s Grant Fitzner, Chief Economist ons, commented on Wednesday.
“The main driver was a hefty increase in air tariffs, the largest July rise since the air raising changed from quarterly to monthly.
“The cost of gasoline and diesel has also increased this month, compared to a drop this time last year. Prices for food continues to rise, with such objects as coffee, fresh orange juice, meat and chocolate, seeing the biggest increase,” he added.
UK Chancellor Rachel Rivz replied on Wednesday, which needs to be done more to make the cost of life.
“We have made the decisions necessary to stabilize state finances, and we are far from double-digit inflation we saw under the previous government, but there is something to do,” she said in the comments by email.
The British pound largely treated the dollar after the data was traded by $ 1.3489.
Inflation services received up to 5% in July from 4.7% in the previous month. Analysts, as services focused on services are considered as another obstacle in the Bank of England attempts to tame inflation, as services -oriented services increase prices to cover the cost of raising wages and recent hiking for national insurance.
A higher reading in July also reduces the likelihood that this year the Bank of England reduces any additional interest rates.
“I am angry with inflation of services, it looks sticky, and given the importance of UK economics services, I look at it and think that the IPC (the Central Bank’s monetary policy committee) is considering it – and I am sure they are – the likelihood of reducing the rate in November Heldelsbanken, said CNBC Scawk Box.
Recent data comes after Bank of England earlier this month voted for small profitability to reduce interest rates from 4.25% to 4%As the Central Bank, it has resumed what it describes as a “gradual and careful” to weakening cash.
While Boe is supposed to be assumed at 25 basic points, traders and economists sought to see support for this step. In the end, politicians needed to vote twice by decisions, and most 5-4 decided to reduce.
Members of the BOE policy committee had to weigh a sticky inflation With the coolant market market And unsuccessful but slightly restoring growth. GDP data last week showed an unexpected extension by 0.3% in the second quarter.
Boe closely monitors inflation, After forecasting the consumer price index can reach 4% in September Before the retreat at the beginning of 2026.
Deutsche Bank estimates that the UK remains “planting” from an annual 4%inflation level.
“We expect the pressure on the prices to soften the fourth quarter of 2025, however, tracking up to 3.5% by the end of the year,” said Sanji Raja, senior economist of a German lender, on Friday by email.
“Moreover, we expect the pressure on prices to ease next year.