Inflation in the United Kingdom again accelerated in June and reached its highest level since January, driven by the rise in fuels and services.
The British inflation He kept increasing since last September he played a minimum of three years of 1.7%and in May the Bank of England predicted that would reach a maximum of 3.7% in September, almost double the 2% target set by the Central Bank.
The June data of the National Statistics Office (ONS) placed The annual CPI at its highest level since January 2025. The increase in transport costs, especially fuels, was the factor that most contributed to the increase in the inflation rate between May and June, according to the ONS.
The sterling pound rose slightly against the dollar after knowing the datawhich could press the Bank of England so that you do not cut interest rates at its next August meeting.
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Previously, The month of April was an especially abrupt jump of inflation up to 3.5%due to the increases of the regulated rates of energy and water, a rebound of air rates and upward pressure on the cost of intensive labor services due to the increase in taxes on employment and minimum wage.
Despite this, the governor of the BOE, Andrew Bailey, said it is likely that Interest rates follow a gradual path down, since the weakness of the labor market presses down the salary growth and the prospects for economic growth remain mediocre.
The ECB’s decision on rates
He Bank of England cut the interest rates in four pitch quarters since August And the economists surveyed by Reuters last month two cuts more than a quarter quarter this year.
However, some responsible for the Bank of England are concerned that mismatches in the qualifications of the British labor market and other limitations of the supply make salary growth remain too fast for inflation to return to the short -term objective again.
The inflation of the prices of the services, a measure that the Bank of England considers a better guide of the pressures on the prices generated internally than the general rate of the CPI, remained at 4.7% in June, in contrast to the forecasts of the economists to fall to 4.6%.
The Bank of England predicted in May that inflation would be in the objective in the first quarter of 2027.
Source: Ambito
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