UK CPI eases to 2.6% y/y in June, misses expectations

The UK consumer prices lost its bullish momentum and eases-off multi-year highs in June, arriving at 2.6% y/y, versus 2.9% booked in May, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also decelerated in June, coming in at +2.4 y/y. Markets had predicted the core figures to remain unchanged at +2.6%.

On monthly basis, the UK inflation figures also followed suit, coming in at 0.0% last month, as compared to 0.3% previous and expectations of +0.2%. 

ONS reports, “Falling prices for motor fuels and certain recreational and cultural goods and services were the main contributors to the fall in the rate. These downward contributions were partially offset by rising prices for furniture and furnishings.”