Inflation slows during June
CPI inflation – the government’s target measure – slowed during June to 4.2%, new figures show today.
The consumer prices index figure dropped by 0.3% from 4.5% in May with the Office for National Statistics stating the main downward pressure to annual inflation came from recreation and culture.
The main upwards pressures came from food products.
The retail prices index inflation figure fell to 5% in June from 5.2% the previous month.
David Scott, senior stockbroker at Redmayne-Bentley, said: ‘Both the RPI measure and CPI measures of inflation came in below expectations, helped by recent weakness in oil prices which offset rising food prices.
‘Prices for food and non-alcoholic beverages increased 6.9% on an annual basis, the highest increase since May 2009.
‘The pause in inflation rate however looks likely to be only temporary as the annual rise in prices, as measured by the consumer prices index (CPI), is forecast to hit 5% within months, a higher peak than previously anticipated by the Bank of England, which has recently had to revise its forecast upwards to reflect rises in energy prices.’