UK inflation in June slowed to the lowest since March 2022

According to the National Statistical Office of the United Kingdom (ONS), consumer prices in the country in June increased by 7.9% compared to the same period last year. This is the lowest rate of inflation since March 2022. 

Thus, inflation in the country has slowed down compared to the indicator of May, which was 8.7%. The consensus forecast of experts assumed a weakening of inflation in June to 8.2%.

Monthly consumer price growth also slowed in June to 0.1%, compared with 0.7% in May. Analysts had forecast an increase of 0.4%.

Core inflation (CPI Core index, which does not include food, alcohol, tobacco and energy) showed an increase of 6.9% y/y and 0.2% on a monthly basis. In May, the corresponding figures were 7.1% and 0.8%.

The retail price index (RPI) in June increased by 10.7% compared to the same period a year earlier (11.3% in May). The RPI index is used by British employers when negotiating salaries. The difference in the dynamics of the CPI and RPI indices is related to taking into account housing costs in the RPI index, as well as different weights of air fares, insurance and gasoline prices. On a monthly basis, the RPI index rose 0.3% after rising 0.7% in May.