2023-08-16 07:16:14
Inflation slowed markedly in July in the United Kingdom, to 6.8% over one year once morest 7.9% in June, mainly thanks to the fall in energy prices, the British Office for National Statistics indicated on Wednesday ( NSO).
Food prices for their part continued to rise in July in the country, but less rapidly than a year earlier, thus also contributing to the brake on inflation, specifies the ONS.
The latter was “widely expected for July”, given the energy tariffs lowered by the British sector authority, notes Alpesh Paleja, economist at the CBI, the country’s main employers’ organization.
“However, the Bank of England will be more concerned regarding signs of price persistence within the country,” in particular “strong wage growth, which suggests more interest rate hikes to come,” adds- he.
Salaries excluding bonuses recorded an average increase of 7.8% year on year for the period from April to June, a record since this data began to be recorded in 2001.
This augurs “tougher financial conditions that will continue for households and businesses”, argues Mr. Paleja.
The Bank of England made a 14th increase in its key rate at the beginning of August to 5.25%, in an attempt to calm the surge in prices in the United Kingdom.
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