According to the latest release from The Office for National Statistics rates in the UK’s Consumer Price Index (CPI) , which is the key measure for inflation, fell in June to 2.6% from 2.9% in May.
It was widely expected that inflation would remain at the May level of 2.9%
The ONS stated thyat ” Falling prices for motor fuel avarious recrteational and cultural goods and services were the main contributors to the fall in the rate which were partly offset by rising prices for furniture and furnishings”
The value of Sterling fell sharply down to US$1.3026 on news breaking due to the expectation that the Bank Of England would now be less likely to increase interest rates in the near future.
If UK inflation continues to moderate then this could bode well for economic growth in the UK .