UK inflation rises less than expected to 2.2%

Services inflation in decline while gas and energy price impact seen

Cristian Angeloni
clock • 2 min read

The UK Consumer Prices Index rose by 2.2% in the 12 months to July 2024, after reaching the Bank of England’s (BoE) 2% target in the previous two months, according to the Office for National Statistics (ONS).

The largest contribution to the headline inflation figure came from gas and electricity prices, as they fell less than they did a year ago, while the largest contribution came from restaurants and hotels, where prices fell. Economists polled by Reuters had expected a headline inflation rise to 2.3%. Core inflation fell from 3.5% in June to 3.3% in July, alongside services inflation which dropped sharply to 5.2% from 5.7% the previous month.  Raymond James Investment Services European strategist Jeremy Batstone-Carr noted that the recent uptick in inflation was "mechanistic" as it can ...

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