CPI unexpectedly eases in June

Earlier today, the Office for National Statistics (ONS) released the latest Consumer price inflation figures for the U.K. which unexpectedly declined in June, following a four year high in May.

In the June report, the ONS said CPI increased from the year before by a seasonally adjusted 2.6%, well below the forecasts, which expected it to at least remain unchanged from the 2.9% in May, the highest figure since June 2013. The ONS highlighted that it was the first decrease in CPI since April 2016.

Month on month, consumer price inflation was unchanged in June, compared to forecasts for a 0.2% increase and the 0.3% gain registered in the previous month.

The retail price index (RPI) increased by 3.5% in June, after rising by 3.7% the previous month. Analysts had expected inflation to ease to 3.6%.

Month-on-month, RPI increased by 0.2% in June, compared to a 0.4% advance in the prior month. Economists had forecast a 0.3% gain.

For all the very latest economic and consumer confidence statistics, check out our Economic Data page here.

The data also revealed that the house price index rose 4.7% in June, above forecasts for a gain of 3.2% and following a 5.3% increase a month earlier. May’s data was revised from an initial 5.6% rise.

The ONS indicated that falling prices for motor fuels and certain recreational and cultural goods and services were the main contributors to the fall in the rate.

“These downward contributions were partially offset by rising prices for furniture and furnishings,” the ONS said.

Source: Insight DIY Team

Sign up for the Insight DIY newsletter and receive all the very latest economic stat's and data that impacts the UK Home Improvement and gardening market.