Inflation in the U.K. came in hotter than expected as another country faces the consequences of supply chain disruptions and loose monetary policy, according to the latest data from the Office for National Statistics…(ONS)
- Y-O-Y: The Consumer Prices Index rose by 9.4% in the 12 months to June, up from 9.1% in May and higher than economist predictions of 9.3%.
- M-O-M: CPI rose by 0.8% in June, up from the rise of 0.5% in May and higher than economist predictions of 0.7%.
NOTE: Inflation is now at the highest level since February 1982.
Rising prices for motor fuels (+42.3%) and food (+9.8%) made the largest upward contributions to the change in both the monthly and annual data.
This jump, undoubtedly, has pushed the consensus that the Bank of England will raise rates by 50 basis points at the next meeting. This would be the biggest since 1995.
