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UK inflation rate rises to 2.2%

2024/08/14/08:36
in Central Banks, UK News
Reading Time: 2 mins read
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The consumer price index, which measures changes in the cost of living, rose by 2.2% in the year to July.

That’s an increase from 2% in both May and June and the first increase in inflation since last December (when CPI inflation was 4%).

It takes the rate of price increases back above the Bank of England’s 2% target.

But it’s not quite as high as the 2.3% that City economists expected.

CPI rose by 2.2% in the 12 months to July 2024, up from 2.0% in June 2024, mainly driven by prices of gas and electricity falling by less than a year ago.

Read the release ➡️ https://t.co/yVx4Eus6TJ pic.twitter.com/X3P2QsS4Kv

— Office for National Statistics (ONS) (@ONS) August 14, 2024

The Office for National Statistics says that the largest upward contribution to this month’s change in inflation came from housing and household services where prices of gas and electricity fell by less than they did last year.

But…the largest downward contribution came from restaurants and hotels, where prices of hotels fell this year having risen last year. That’s a surprise, as economists had suggested that surge pricing at hotels would add to inflation.

Source: The Guardian

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