UK inflation expected to increase in July, surpassing Bank of England's target, with potential future decrease

From Morningstar: 2024-08-12 06:22:00

UK inflation rate is predicted to have increased in July, reaching 2.3% annually, up from 2% in June, surpassing the Bank of England’s 2% target. Core CPI expected to ease to 3.3% in July, with services inflation holding at 5.7%. Bank of England recently cut interest rates, with markets expecting another cut in November.

July saw various factors driving inflation, including sporting events, heatwaves, social unrest, and currency fluctuations impacting imports and exports. Change in government with Labour taking control may lead to new fiscal measures, potential tax rises affecting consumer spending. Shift in economic policy could result in lower inflation in the future.



Read more at Morningstar: UK Inflation: What to Expect from July’s Data