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UK headline inflation eases in June as core stays firm
June headline CPI rose 0.1% month over month, while core CPI increased 0.3%, leaving services inflation only marginally lower at 3.6%.
UK inflation eased slightly in June, with headline annual CPI at 2.6% versus 2.7% expected, down from 2.8% previously, according to data discussed by Forexlive.
The bigger surprise was core inflation, which held steady at 2.6% year over year versus 2.5% expected, and monthly core prices rose 0.3% compared with an estimated 0.2%.
On a monthly basis, headline inflation increased 0.1%, while food prices fell 0.2% and transport dropped 0.3%. Travel related items offset some of that softness, with restaurants and hotels up 1.0% and recreation and culture up 0.5%.
Goods price inflation slowed to 1.7% from 2.0% in May, but services inflation only eased marginally to 3.6% from 3.7%, keeping pressure on Bank of England policymakers. Forexlive also noted that energy prices are expected to rebound in July as the US-Iran conflict flares up again, which could complicate the inflation outlook.