UK July CPI: A miss on expectations across all indicators

The UK consumer prices stagnated in the month of July, remaining unchanged at 2.6% y/y, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also steadied in July, coming in at +2.6 y/y. Markets had predicted the core figures to tick slightly higher to +2.7%.

On monthly basis, the UK inflation figures decelerated slightly, coming in at -0.1% last month, as compared to 0% previous and expectations of 0%. 

ONS reports,”the price of motor fuel continued to fall and provided the largest downward contribution to change in the rate between June 2017 and July 2017. This was offset by smaller upward contributions from a range of goods and services, including clothing, household goods, gas and electricity, and food and non-alcoholic beverages.”