Inflation rate drops to 11.14% in July-NBS

Lloyd Doyle
August 15, 2018

"Transport tickets and fuel, along with often erratic computer game prices, drove up costs for consumers", the ONS' head of inflation, Mike Hardie, said in a statement alongside the data release. The next bi-monthly policy is to be unveiled on October 5.

The rate of price rise in fruits slowed down 6.98 percent, as against over 10 percent in the previous month.

United Kingdom inflation rose to 2.5% in July, after holding steady at 2.4% in the previous three months as the cost of transport and computer games increased.

The report reads in part, "The consumer price index, which measures inflation, increased by 11.14 per cent (year-on-year) in July 2018".

United Kingdom inflation climbed in July as had been expected, according to the latest data from the Office for National Statistics (ONS) released on Wednesday. "Internally, food inflation moderated and is expected to behave at this pace for the next two months before the impact of the revision of kharif MSP starts impacting inflation".

However, inflation in the "fuel and light" segment based on the changes in the CPI increased to 7.96 percent from 7.14 in the previous month.

India Ratings and Research's (Ind-Ra) Chief Economist and Senior Director (Public Finance) Devendra Pant said: "This is nine month lowest retail inflation". Nevertheless, the area covered under rice, coarse cereals, pulses and cotton continues to lag year-ago levels.

Now the big question is what will be happen when the Monetary Policy Committee (MPC) meets in October.

Samuel Tombs at Pantheon Macroeconomics added: "Unless inflation in the services sector strengthens dramatically, CPI inflation will fall below the 2% target in the first half of next year". Agreeing, IndRa's Pant said a sharp decline in retail inflation closer to the RBI's 4 per cent inflation target will give much comfort to monetary authorities. Analysts expect the central bank to stay paused for the rest of the financial year.

Other reports by Iphone Fresh

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