LONDON: According to the Office for National Statistics (ONS), the annual consumer price inflation in Britain experienced a considerable decline, coming in at 7.9% in June. This figure, revealed on Wednesday, was lower than what experts had anticipated.
Prior to the release of the data, the economists had predicted that the Consumer Price Index (CPI) rate for the 12-month period ending in June would decrease to 8.2%. This projected drop was expected to distance itself further from the 8.7% recorded in May, which had already moved away from the 41-year high of 11.1% observed in October. However, the current figure still remains significantly higher than the Bank of England’s target of 2% inflation, according to local media.
In a previous announcement made in May, the Bank of England (BoE) had stated its expectation for a decline in June’s inflation to the precise figure of 7.9%. This recent data release confirms the accuracy of the BoE’s prediction.
As the economy continues to grapple with rising prices, policymakers are closely monitoring inflation levels. The persistently high inflation poses challenges to the central bank’s ability to maintain price stability and ensure a favourable economic environment.
