Month-on-month inflation slowed in June, coming in at 0.1%, however, annualised inflation slowed to 7.9%, from 8.7% in May, the lowest it’s been since March 2022.
Annualised inflation was forecast to come in at 8.2% (Trading Economics), whilst Core Inflation rose 6.9% in the 12 months to June 2023, down from 7.1% in May.
Nicholas Hyett, Investment Manager, Wealth Club said, “June inflation numbers has come in comfortably below expectations. While that was driven to a large extent by changes in non-core factors like motor fuel and food prices, core inflation is down too and no sectors have reported dramatic upticks in price.
“While one swallow doesn’t make a summer, there will be real hopes that this marks a turning point for UK inflation.
“It’s been stubbornly high even as other economics have started to see price rises ease, and that’s created a cruel cost of living crunch.
“With other indicators, such as corporate insolvencies, also suggesting the economy is weakening the next challenge is to keep the economy from collapsing into the deep freeze and trigging a painful recession.
“The Bank of England may ease off the peddle where interest rate rises are concerned, but it’s careful balancing act isn’t over yet.”