Inflation records greater than expected fall in UK
August 20, 2014 6:34 am
Data released on Tuesday showed that inflation for the UK dropped off more significantly than expected during the month of July.
The Office of National Statistics (ONS) said through a report that prices of consumer items increased by 1.6% last month to completely surge past forecasts for a 1.8% decline made through a Reuters survey of economists. Inflation levels reached the highest in five months during the month of June when it was higher by 0.3%. The largest gains were made by clothing and footwear products.
According to the ONS, overall inflation for the second quarter fell to 1.7% with an underlying measure that leaves out volatile products such as food, energy, alcohol, and tobacco placing July’s inflation advancing by 1.8%.
Prices of houses in Britain continued to increase, but at a slower pace of 10.2% in June to boost the belief that the UK’s rapidly rising housing market is beginning to moderate on its own. London maintained its position at the top of the price list with a 9.3% increase. The ONS also revealed that factory gate prices similarly declined by 0.1% on an annual rate.
Inflation had consistently surpassed the target set by the Bank of England of 2% every month since December 2009. The regular surge in prices contributed to the mounting pressure on British households with falling wages which has negatively impacted spending in the region. As a result, a decline in living standards has been put under the spotlight as an issue to address during the elections in 2015.
The material has been provided by InstaForex Company – www.instaforex.com
Data released on Tuesday showed that inflation for the UK dropped off more significantly than expected during the month of July.
The Office of National Statistics (ONS) said through a report that prices of consumer items increased by 1.6% last month to completely surge past forecasts for a 1.8% decline made through a Reuters survey of economists. Inflation levels reached the highest in five months during the month of June when it was higher by 0.3%. The largest gains were made by clothing and footwear products.
According to the ONS, overall inflation for the second quarter fell to 1.7% with an underlying measure that leaves out volatile products such as food, energy, alcohol, and tobacco placing July’s inflation advancing by 1.8%.
Prices of houses in Britain continued to increase, but at a slower pace of 10.2% in June to boost the belief that the UK’s rapidly rising housing market is beginning to moderate on its own. London maintained its position at the top of the price list with a 9.3% increase. The ONS also revealed that factory gate prices similarly declined by 0.1% on an annual rate.
Inflation had consistently surpassed the target set by the Bank of England of 2% every month since December 2009. The regular surge in prices contributed to the mounting pressure on British households with falling wages which has negatively impacted spending in the region. As a result, a decline in living standards has been put under the spotlight as an issue to address during the elections in 2015.
The material has been provided by InstaForex Company – www.instaforex.com
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