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UK Inflation Cools to 2% in July After Four Straight Months of Acceleration

August 18, 2021 by Forex Winner Leave a Comment

UK Inflation Cools to 2% in July After Four Straight Months of Acceleration

Source: Office for National Statistics

After accelerating for four straight months, inflation in the United Kingdom slowed in July as lower prices of clothing and recreational goods were recorded during the period.

  • The Consumer Price Index stood at 2.0% in July, down from 2.5% in June but up from the 1.0% recorded the same month last year.
  • The Consumer Price Index, including owner occupiers’ housing costs for the month, slowed to 2.1%, after clocking in at 2.4% in June, but faster than 1.1% in July 2020.
  • The biggest downward contribution was recorded in recreation and culture which eased to 0.09 percentage points from 0.35% in August 2020. 
  • Clothing and footwear prices likewise fell in July as usual during the summer sales season.
  • The biggest upward contribution to change was in price rises for second-hand cars, which rebounded from the drops a year ago.
  • Average petrol prices also recorded an eight-year high at 132.6 pence per liter versus 111.4 pence per liter a year earlier. This is the highest since September 2013.
  • Second-hand cars also recorded an upward pull of 0.18 percentage points, its largest contribution since May 2010.

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