UK June CPI 2.6%: Core, Services Inflation Stay Hotter Than Expected
UK headline CPI eased to 2.6% in June, just below the 2.7% forecast. Core inflation rose 0.3% month-on-month, above the 0.2% estimate, and services inflation held at 3.6%.
UK headline inflation eased to 2.6% in the year to June, just below the 2.7% consensus forecast, the Office for National Statistics reported. Core inflation, which strips out energy, food, alcohol and tobacco, rose 0.3% on the month. That was above the 0.2% estimate.
On the month, food prices fell 0.2% and transport costs dropped 0.3%. Increases in restaurants and hotels, up 1.0%, and recreation and culture, up 0.5%, offset those declines.
Services inflation, a key measure for the Bank of England, eased only to 3.6% from 3.7% in May. Economists had expected a fall to around 3.5%.
The BOE's next policy decision is scheduled for August 1. The services inflation reading came in above the 3.5% estimate. The pound's reaction to the data can be tracked on the GBP/USD profile.
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