The UK’s anticipated inflation rate was 7.0 percent, the lowest level since February 2022

September 21, 2023

According to figures from the Office for National Statistics, factory gate prices in the UK decreased for a second consecutive month in August, and consumer price inflation unexpectedly slowed down.

Following a 6.8% increase in July, the consumer price index increased by 6.7 percent in August.

It was anticipated that inflation would increase to 7%. Additionally, since February 2022, this inflation rate was the lowest.

In contrast to July’s 0.4 percent decline, the CPI increased by 0.3 percent on a monthly basis. It was anticipated that prices would increase by 0.7% in August.

Core inflation, which excludes energy, food, alcohol, and tobacco, fell from 6.9 percent to 6.2 percent in the previous month.

The annual decline in production prices decreased to 0.4 percent from a revised 0.7 percent in July, according to additional data from the ONS. Price decline of 0.6 percent was anticipated.

Similar to output prices, which fell 2.3 percent after decreasing 3.2 percent the month before. The rate of decline was also less than the predicted reduction of 2.7 percent.

The production price index increased by 0.2 percent month over month, matching the rate of increase witnessed in July but exceeding economists’ expectations of a 0.1 percent gain.

In the meantime, input prices increased 0.4% month over month, reversing the 0.4% decline in July. Prices were expected to increase by 0.2 percent by economists.

Source: RTT NEWS
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