UK June CPI steadies at 2.4% y/y, core CPI drops to 1.9% y/y

Dhwani Mehta FXStreet

The UK Consumer Prices Index (CPI) 12-month rate came in at 2.4% in June, unchanged from May’s reading and against 2.6% anticipated, the UK Office for National Statistics (ONS) reported on Wednesday.

Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at 1.9% y/y, down from 2.1% booked in May while surprising the markets to the downside.

The monthly figures showed that the UK consumer prices decelerated to 0.0% in June versus 0.4% previous, missing 0.2% expectations.

Main Points (via ONS):

“The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.3% in June 2018, unchanged from May 2018.

Rising prices for motor fuels and domestic gas and electricity produced the largest upward contributions to change in the rate between May and June 2018.

Falling prices for clothing and games, toys and hobbies provided the largest downward effects.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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