2023-07-19 07:21:21
Inflation slowed more than expected in the United Kingdom in June, to 7.9% over one year against 8.7% in May, the Office for National Statistics (ONS) said on Wednesday, but remains the highest of the G7 countries.
The pound reacted by falling against the dollar, as investors lowered their expectations of interest rate hikes by the Bank of England.
The decline in fuel prices after their soaring last year is the main factor in the slowdown for prices, the ONS indicates in its monthly report, while food prices have also slowed somewhat.
UK inflation, despite slowing more sharply than expected in June, “remains high and more persistent than in other Western economies, and this is consistent with more aggressive Bank of England actions than in others leading central banks,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
Inflation, for example, slowed to 3% in the United States and 4.5% in France in June.
Chancellor of the Exchequer Jeremy Hunt for his part noted that “inflation is receding and is at its lowest level since last March but we are not giving up and know that high prices are a huge worry for families. and businesses”.
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