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U.K. Inflation Rate Rises More Than Forecast on Airfare Surge

Posted by Chris Advincula on Jul 19, 2016 6:30:37 AM

(July 19 Bloomberg) U.K. inflation accelerated more than economists forecast in June boosted by airfares on trips to continental Europe.

The rate rose to 0.5 percent from 0.3 percent in May, the Office for National Statistics said in London on Tuesday. Economists had expected 0.4 percent, according  to the median estimate in a Bloomberg survey. Core inflation, which excludes volatile food and energy prices, strengthened to 1.4 percent.

Airfares jumped 11 percent in June from May, partly due to the Euro 2016 football championship in France, which saw England progress to the second round of the tournament before losing to Iceland. The ONS said the rising cost of oil also helped to "nudged up" the index.

The data were largely collected before June 23, when Britain voted to quit the European Union, so the recent drop in the pound isn't captured in the numbers. The only data partially gathered after that date were motor fuels, which are based on an average for the month. The July release, set to be published Aug. 16, will be the first to cover the post-referendum period.

Click on the link below to see the full story from Bloomberg: (by Lucy Meakin)

UK Inflation Rate Rises More Than Forecast on Airfare Surge





Topics: market fundamentals, U.K. Inflation, Forex, UK CPI, UK Economic Data, BREXIT


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