19 July 2023

The UK's inflation rate has fallen to 7.9% in June, however this still run’s well above the government’s official 2% target.

The CPI rose by 7.9% in the 12 months to June 2023, down from 8.7% in May. The Office for National Statistics (ONS) suggests that the rate in June 2023 was the lowest since March 2022. On a monthly basis, CPI rose by 0.1% in June 2023, compared with a rise of 0.8% in June 2022. The easing in the CPI annual rate between May and June 2023 was a result of prices rising by 0.1% on the month compared with a rise of 0.8% a year earlier.

According to data released by the ONS today, falling prices for motor fuel led to the largest downward contribution to the monthly change in CPI annual rates, while food prices rose in June 2023 but by less than in June 2022, also leading to an easing in the rates. There were no large offsetting upward contributions to the change in the rate.

Keep an eye out for our update on the upcoming Bank of England bank rates, set to be released 3 August 2023.

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