UK Inflation Rate Unexpectedly Rises Above BoE Target


The consumer price inflation rate in the United Kingdom rose to 2.1 percent year-on-year in July 2019, beating market expectations of 1.9 percent and staying above the Bank of England's 2 percent target.

Main upward pressure came from recreation and culture (2.4 percent vs 1.8 percent in June), restaurants and hotels (3.1 percent vs 2.4 percent), clothing and footwear (0.4 percent vs -0.5 percent), furniture, household equipment and maintenance (1.1 percent vs 0.9 percent), and miscellaneous goods and services (1.7 percent vs 1.1 percent). On the other hand, prices rose at a softer pace for transport (1.5 percent vs 2.4 percent), housing, water, electricity, gas and other fuels (2.4 percent vs 2.8 percent), and food and non-alcoholic beverages (1.4 percent vs 1.6 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) rose 2 percent in July, faster than 1.9 percent in June.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, advanced to 1.9 percent in July, the highest in six months.

On a monthly basis, consumer prices were flat for the second straight month, defying market consensus of a 0.1 percent fall. Increases in prices for recreation and culture (1.1 percent), restaurants and hotels (0.8 percent) and transport (0.4 percent) were offset by declines in costs for clothing and footwear (-2.9 percent), furniture, household equipment and maintenance (-1.7 percent), and miscellaneous goods and services (-0.1 percent).

 UK Inflation Rate Unexpectedly Rises Above BoE Target


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/14/2019 9:02:46 AM