United Kingdom inflation rises for the first time since 2017


There was a sharp drop in the rate of inflation last month, and it's now at its lowest level since the start of past year.

Government data released on Monday revealed that the rates of inflation for vegetables were negative (-2.19 per cent) along with pulses (-8.91 per cent) and sugar and confectionery (-5.81 per cent).

In its latest report released yesterday in Abuja, the National Bureau of Statistics (NBS) indicated that the Consumer Price Index (CPI) which measures inflation declined by 0.09 per cent in July, 18th consecutive reduction in inflation since January 2017.

Another measure of inflation, the Retail Price Index (RPI), rose by 3.2 percent, its weakest rise since March 2017.

He said that this category, coupled with the transport and communication group, is expected to exert pressure on retail inflation.

The cost of raw materials for manufacturers was 10.9 percent higher, the biggest annual rise in over a year, reflecting an increase of more than 50 percent in oil prices.

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"As the temporary factors pushing prices up fade away, inflation is expected to slowly fall back close to the target rate, but that will offer little respite for workers without a significant pickup to their salaries in tandem".

Tej Parikh, senior economist at the Institute of Directors, said the rise in inflation showed the cost of living squeeze was not yet a thing of the past.

Across the United Kingdom, prices increased on average by 3pc in the. "This is likely to weigh down consumer spending, posing fresh problems for embattled high street businesses", he added.

On Tuesday, data showed average earnings, including bonuses, rose an annual 2.4 percent in the three months to June, extending a long run of pay rises below their pre-financial crisis levels.

John Hawksworth, chief economist at PwC, said real household income growth will remain "subdued" over the next year. However for eggs, cereals and products as also oil and fats the rate of price rise was higher than in June.

On a seasonally adjusted basis, average house prices in the United Kingdom were unchanged between May 2018 and June 2018, compared with an increase of 0.5 per cent in average prices during the same period a year earlier.