'Consumer-price inflation may yet touch 3 percent in the near term, but it should start heading gradually down toward the end of the year' - Howard Archer, an economist at IHS Global Insight
Consumer price pressure in Britain eased to a 14-month low last month, led by airfares and summer discounts on clothes, figures from the Office for National Statistics showed Tuesday. A gauge of consumer prices fell to 2.8% in July, down from 2.9% a month earlier, meeting analysts' expectations. On a monthly basis prices were unchanged, compared with a 0.2% drop recorded in June, while core CPI, which excludes volatile prices of energy, food, alcohol and tobacco, decelerated to 2%, lower than market expectations of 2.2% and previous month's figure of 2.3%.
The ONS also said the main contributors to the fall in the rate were airfares, particularly long-haul flights, along with price falls in the sectors of recreation, culture, clothing and footwear. Moreover, an increase in petrol and diesel prices partially offset a drop. Furthermore, prices in London, which sometimes act as a leading indicator for the rest of the economy, soared 8.1%.
The Bank of England is currently aiming at 2% inflation target, also saying the consumer-price growth will remain around current level for a couple of month before easing. And even though Mark Carney has introduced forward guidance last week, the BoE said price stability and the inflation goal are still its priority.
IMOH, Clement I.
+234 802 905 9344
+234 703 569 1707
No comments:
Post a Comment