LONDON: Britain’s annual inflation rate slowed more than expected in June as it dropped below 8 per cent, official data showed on Wednesday (Jul 19), easing the country’s cost-of-living crisis.
The Consumer Prices Index rose by an annual rate of 7.9 per cent, down from 8.7 per cent in May as food price inflation eased, the Office for National Statistics said in a statement.
The CPI rate was the lowest since March 2022, while analysts’ consensus forecast had been for a drop to 8.2 per cent. The UK rate remains the highest among G7 nations.
The data sent the British pound sliding against the dollar and euro, although the Bank of England is expected to keep on raising interest rates to combat elevated prices, analysts said.
“Food price inflation eased slightly this (June) month, although it remains at very high levels,” ONS chief economist Grant Fitzner said in the release.
He added that although manufacturing costs remained elevated, “the pace of growth has fallen across the last year”.
Finance minister Jeremy Hunt noted in a separate statement that “high prices are still a huge worry for families and businesses.
