16 August 2023

The Office for National Statistics (ONS) has released the inflation data for the 12 months up to July 2023 and it shows a rise of 6.8% for CPI inflation.

This is a reduction of 1.1 percentage points from June 2023, indicating a slowing of inflation. It is worth noting that July 2022 saw a CPI figure of 10.1%, being exceeded only by October’s figure of 11.1%. Will we similarly see October’s 2023 figure be lower in comparison to the surrounding months?

The Bank of England, responsible for keeping inflation to a targeted 2%, will be keeping an eye on these figures to see how the base rate will need to be adjusted. This then has an impact on HM Revenue and Customs’ (HMRC’s) late payment interest rates.

The next CPI data is due on 20 September 2023, whereas the base rate announcement is due the following day, 21 September 2023.

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