UK July Consumer Price Inflation Rate at 6.8% Year-on-Year... Lowest Since Ukraine War

The UK’s consumer price inflation rate in July recorded the lowest level since the Ukraine war.

The Bank of England (BOE), the central bank of the United Kingdom / Photo by Yonhap News

On the 16th (local time), the UK Office for National Statistics announced that the consumer price inflation rate fell to 6.8% annually in July, down from 7.9% in the previous month. This is the lowest level in 1 year and 5 months since the outbreak of the Ukraine war in February last year.

The biggest factor was the decline in gas and electricity bills, and the food price inflation rate (14.9% annually) also eased slightly.

Although the inflation rate has dropped significantly from 11.1% annually in October last year, the Bank of England (BOE), the UK’s central bank, is expected to continue raising interest rates. This is because the inflation rate still exceeds three times the BOE’s target rate (2% annually) and remains higher compared to the Group of Seven (G7) countries.

The core inflation rate (excluding volatile items such as energy and food) remained at 6.9% annually, the same as the previous month, which is also considered a factor. The service price inflation rate rose to 7.4% annually from 7.2% in the previous month due to a sharp increase in airfares and hotel rates during the holiday season.

Meanwhile, the UK’s basic wage growth rate for the second quarter, announced the day before, exceeded expectations at 7.8% annually. Prime Minister Rishi Sunak said, "The plan to halve the inflation rate within this year is working," and added, "If we maintain the plan, we will be able to reach the target."

This content was produced with the assistance of AI translation services.