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UK Inflation rate grew for the first time in 2018


Ağustos, 16 2018
watermark Economic news

The inflation rate of Britain increased in July for the first time this year. Although there are some indicators saying this was just a temporary thing, keeping household budget intact but inflation could possibly go down at a faster rate that expectations of the Bank of England.

Consumer price inflation rose by 2.5 percent in July from 2.4 percent in the past three months, matching economist’s forecast based on Reuters’ poll. It was the first time since November since the inflation gained momentum that slowed recovery of consumer spending.

Average earnings, including bonuses, grew by 2.4 percent at an annual rate in the second quarter according to the Office for National Statistics on Tuesday. This extends the period of pay increases below the pre-financial crisis levels.

A measure of core inflation moved out of large price moves and aimed to bring down inflation of the central bank to two percent target in a year based on the data from think tank, a National Institute for Economic and Social Research.

Yet, if the BoE pursues with the rate hike this month, the forecast for inflation will be above the 2 percent target in the period of two years.


    






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