Markets

United Kingdom inflation rate falls unexpectedly in June

United Kingdom inflation rate falls unexpectedly in June

The fall in headline inflation will likely tilt the Bank of England's monetary policy committee (MPC) away from a vote for an interest rate hike, after a flurry of interviews by policymakers in recent weeks had put tighter monetary policy on the table.

The Office for National Statistics said consumer prices were 2.6 percent higher in the year to June, down from 2.9 percent the previous month.

The decline in May was on the back of a fall in oil prices and eases the pressure on the Bank of England to raise interest rates.

United Kingdom inflation fell from 2.9% to 2.6% in June.

This was offset slightly by upward pressure on the rate from furniture and household goods and food and non-alcoholic beverages.

The BoE has been taken by the surprise by the speed of the increase this year. Core inflation also moderated to 2.4 per cent. If you happen to be a householder paying a mortgage, the financial markets are in any case anticipating that rates will rise only slowly.

Governor Mark Carney has said higher borrowing costs would probably be needed if the economy overcomes its slowdown of earlier this year and wages - which are lagging behind inflation - grow more strongly.




The BOE announces its next policy decision and publishes new forecasts on August 3.

"When wages fail to keep pace with price rises, inflation saps the strength of consumption and pushes down demand, as we saw in the early years of this decade", the EY Item Club statement said.

A drop in the cost of computer games and equipment, which pushed up inflation in May, was also a factor.

Although the absence of inflation during the three-month period will be seen as helping justify the Reserve Bank's neutral stance on the official cash rate, banks have warned mortgage rates will continue to edge up regardless. Inflation had previously risen steadily since March, while it had not fallen since September a year ago, but declining oil prices stymied some of the rising price momentum.

The fall was far bigger than economists had expected, pushing down the value of sterling against the United States dollar to $1.303 at the time of writing, undoing the gains of the past two sessions.

Separately, the ONS said house prices in May rose 4.7 percent in annual terms compared with 5.3 percent in April.


  • Kubot and Melo win doubles after a marathon match

    Kubot and Melo win doubles after a marathon match

    The match being played at the Centre Court was suspended at 11-11 and then resumed with the roof being closed. Pavic and Marach won the fourth set before falling 13-11 in the decider after more than four hours of play.
    Jackie Bradley Jr. robs home run from Aaron Judge with great grab

    Jackie Bradley Jr. robs home run from Aaron Judge with great grab

    The key, Girardi said, is Judge's reaction, which hasn't been any different than when things were going well. For Benintendi, this season has had ups and downs, lows have been low, and the highs have been high.
    You'll Wish You Were on Priyanka Chopra's Family Holiday

    You'll Wish You Were on Priyanka Chopra's Family Holiday

    Last evening, Priyanka Chopra posted this snapshot with mother Madhu and brother Siddharth and wrote, "Posers". Priyanka's second Hollywood project, A Kid Like Jake starring Jim Parsons, is slated for a 2018 release.
  • Trump campaign paid lawyer now representing son $50000 in June

    Trump campaign paid lawyer now representing son $50000 in June

    Much of the money raised from individuals came in the form of "small dollar" donations, classed as donations of less than $250. The New York Times revealed the Trump Tower meeting about two weeks later, and Futerfas put out statements defending Trump Jr.
    Salman taking horse riding lessons for 'Tiger Zinda Hai'

    Salman taking horse riding lessons for 'Tiger Zinda Hai'

    As soon as IIFA came to an end, the actor got busy with his shoot schedule for Tiger Zinda Hai . The film is the sequel to the 2012 movie Ek Tha Tiger and the second installment of the series.
    Are Analysts Bearish Chemring Group plc (LON:CHG) After Last Week?

    Are Analysts Bearish Chemring Group plc (LON:CHG) After Last Week?

    JENKINS NEIL E also sold $99,332 worth of Lawson Products, Inc. 1,000 shares were sold by Baker R C Mark , worth $36,910. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements.
  • Francesco Totti accepts offer to become Roma's new director

    Francesco Totti accepts offer to become Roma's new director

    Totti and Di Francesco won the Serie A title together in 2001, one of only five domestic titles in Totti's incredible career. His 786th and final appearance for Roma was as a substitute in a 3-2 league win over Genoa at the Olimpico.
    Duodenoscope Market Global Competitive Analysis and 2022 Forecasts

    Duodenoscope Market Global Competitive Analysis and 2022 Forecasts

    In the market segmentation, the market size and the revenue that was generated by each sub-segment are included in the report . In addition, the overall market potential is further described in the report along with different countries around the globe.
    Assam death toll touches 65

    Assam death toll touches 65

    Authorities were running 256 relief camps and distribution centres in 13 districts, where 18,931 persons were now taking shelter. Several rivers in the region, including Brahmaputra and its tributaries, flowed above the danger mark.
  • United States  readying new sanctions on Chinese firms with ties to North Korea

    United States readying new sanctions on Chinese firms with ties to North Korea

    He said South Korea is putting the effort to convince China that North Korea has become a "destabilizing factor in the peninsula and it has become a security liability".
    Another dual-national Greens senator Larissa Water resigns

    Another dual-national Greens senator Larissa Water resigns

    Ms Waters took full responsibility for the oversight and apologised for any embarrassments, saying it was no-one's fault but hers. The Brisbane-based overseas-born Greens senator today revealed she had failed to renounce her Canadian citizenship.
    Software makers boost India's Sensex, Nifty to record

    Software makers boost India's Sensex, Nifty to record

    The Sensex started on a high note before trading at 32,131.92 at 1100 hours, up 111.17 points, or 0.34 per cent. On the sectoral front, barring the Nifty FMCG index, which lost 1.70 per cent, all indices ended in green.