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Updated · Bloomberg · Jul 22UK Inflation Falls to 2.6% in June as Cheaper Fuel Undercuts 2.7% Forecast
3 articles · Updated · Bloomberg · Jul 22Summary
- UK consumer prices rose 2.6% in the 12 months to June, down from 2.8% in May and below economists’ 2.7% forecast.
- Cheaper motor fuel drove the slowdown, pulling inflation to its lowest level since March 2025 and offering some relief to household budgets.
- The drop gives new Prime Minister Andy Burnham a more favorable backdrop as he pledges to tackle the cost of living.
Insights
Is the UK's inflation drop a false dawn before the Bank of England's predicted year-end price hike? Can Britain's new PM fix the cost of living crisis while also adhering to strict fiscal discipline?