The UK’s 12-month inflation rate saw growth slow in July, largely because of technical base effects linked to the first easing of lockdown conditions last year.
Source: Office for National Statistics
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The Consumer Prices Index, including owner occupiers’ housing costs(CPIH), jumped by 2.1% in the 12 months ending July, down from 2.4% in the previous month.
Meanwhile, the consumer price index increased by 2% in the 12 months to July 2021, down from 2.5% in June.
The transport costs contributed to the largest upward contribution to the CPIH 12-month rate at 0.85%, while clothing and footwear and recreational goods and services applied the largest downward force.
On a monthly basis, both the UK CPIH and CPI remained the same in July 2021, compared with the increases of 0.4% in July 2020.
The easing of inflation growth comes after recent BoE forecasts that the rate will increase to 4% by the end of 2021. The Bank of England is looking to scale back on its pandemic stimulus program in the coming months.