UK sees surprise drop in inflation in June
Inflation in the UK fell to 7.3% in the twelve months to June, down from 7.9% in May.
This is the lowest level of inflation recorded in over a year.
According to the Office for National Statistics (ONS), the biggest contributor to the drop in inflation was a fall in fuel prices, while food prices are rising at a slower rate.
On a monthly basis, the consumer price index rose by 0.1% in June 2023, compared with an increase of 0.8% in June 2022.
Notable falls in inflation were seen in the food and non-alcoholic beverages market, which dropped from 18.4% in May to 17.4% in June, as well as furniture and household goods, which decreased from 7.5% to 6.6%.
Restaurants and hotels also saw their rates of inflation drop between May and June, from 10.3% to 9.5%.
However, inflation in the UK still remains well above the Bank of England’s target of 2%, and is well above other developed economies, such as in the United States (3%) and the Eurozone (5.5%).