July 18 2017 – OFFICIAL figures show that inflation in Britain unexpectedly fell in the year to June, a development that’s likely to ease market expectations that the Bank of England will raise interest rates soon.
The Office for National Statistics said Tuesday said consumer prices were 2.6 percent higher in the year to June, down from 2.9 percent the previous month. The consensus was that inflation would rise to 3 percent.
The surprise fall was largely due to falling gas prices at the pump.
Inflation has risen sharply since last year’s last year’s vote to leave the European Union. The Brexit vote triggered a 15 percent drop in the value of the pound, raising the cost of imports.
The spike in inflation has caused concern among some rate-setters at the Bank of England. – AP