UK inflation rate rises For The First Time In 2024, Hits 2.2% Increase
In July, the United Kingdom’s (UK) inflation rate had faced an increased to 2.2 percent from 2.0 percent in June.
It was said to be the first time in 2024.
The rate exceeded the Bank of England’s (BOE) 2 percent target.
According to the Office for National Statistics (ONS), the decrease in gas and electricity prices this year compared to the previous was a major factor in the increase.
The British Broadcasting Cooporation BBC reports that while prices are rising more quickly today than they were in prior months, they are still rising more slowly than in 2022 and 2023, when consumers were particularly badly impacted by soaring energy and food costs.
It is been reported that the cost of living for millions of people increased as a result of supply chain constraints brought on by the pandemic and the Ukraine war, causing inflation—a measure of how quickly prices increase—to soar to 11.1 percent.
subsequently the publication did note that the Bank of England’s decision to raise interest rates in order to curb consumer demand has caused inflation to gradually decline until June. The bank anticipates that inflation will rise further this year before beginning to decline.
The ONS’s chief economist, Grant Fitzner, stated that although domestic energy costs did decline in July, they did so more slowly than they had at the same period previous year.
Fitzner stated that hotel expenses decreased in July following a sharp increase in June, which somewhat mitigated the increase.
According to the ONS, the inflation rate for food prices had decreased to just 1.5% in July.
According to the ONS, services inflation decreased to 5.2 percent in July from 5.7 percent in June.
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