Inflation in the United Kingdom remained steady at 2.0% for the second consecutive month, according to the Office for National Statistics (ONS). The Consumer Prices Index (CPI) rose by 2.0% in the 12 months to June 2024, maintaining the same rate as May and matching the 2021-lows.
- In June, prices increased by a modest 0.1%, down from the 0.3% rise in May, marking the smallest monthly increase since December 2023.
Key Contributors:
- Restaurants and Hotels: The most significant upward pressure on both the CPIH and CPI annual rates came from the hospitality sector. Hotel prices saw a notable rise compared to the previous year, driving inflation higher.
- Clothing and Footwear: Conversely, the largest downward contribution came from the clothing and footwear sector. Prices for garments fell this year, contrasting with a rise observed a year ago.
Core: Core price growth, which excludes volatile items such as energy, food, alcohol, and tobacco, held steady at 3.5% year-over-year in June 2024, the same rate as in May. This indicates that underlying inflation pressures remain consistent despite the overall steadiness in headline CPI.
The ONS report underscores a balanced inflation environment, with sector-specific dynamics shaping the overall price movement. The steady inflation rate aligns with the Bank of England’s target, providing a stable economic outlook for policymakers and consumers alike.
