Forex »

Slow Down In Rate Of UK Price Growth

James Boston
Share on StockTwits
Published on
www.finances.com
Slow Down In Rate Of UK Price Growth

The latest inflation data from the UK’s National Statistics office is showing that pace of price growth slowed in the month of July. The headline Consumer Price Index reading came in at 1.6% when measured year on year, this compares to June’s 1.9% reading and also falls short of the markets expected level of 1.8% price expansion. The month on month CPI reading contracted -0.3%, slightly more than the -0.2% expected and a reversal on the previous month’s 0.2% growth in general prices. The Core CPI year on year number fell to 1.8% in July, down from the 2.0% reading experienced in June.

Retail Prices in the UK also underwent a slight pull back in the month of July. The Main Retail Price Index (RPI) for the month produced year on year growth of 2.5%, this compares to the 2.6% experienced in June, market consensus was for no material change to the June reading. The Month over Month CPI number contracted by -0.1% during July, this represents a fall from the 0.2% growth seen in June, this change was exactly as anticipated by consensus estimates. The British Core RPI numbers fared little better during the same month. The Core RPI year on year expanded by 2.6% compared to the 2.7% reading in June, this slight fall was in line with market expectations. The month on month Core RPI reading contracted by -0.1% as anticipated, this represents a turn around of June’s growth of 0.2%.

The National Statistics office also announced a moderate cooling in residential property price growth this morning. The DCLG House Price Index has is showing an expansion of 10.2% year on year to July, this remains an elevated level but it does represent a slowing of the pace of growth from the 10.5% experienced in June. Analysts had expected to see this number rise to 11.2% this month.

Share on StockTwits