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UK CPI inflation marks first increase since January

UK CPI inflation marks first increase since January

The consumer price index, the Bank of England’s preferred gauge for inflation, rose to 0.6 percent in the year ended June, recording its first rise since January.

In May, the CPI reading showed a rise of 0.5 percent, while economists predicted a retreat to 0.4 percent last month.

The ONS attributed the soar to the lockdown measures that boosted the cost of computer games and forced clothes retailers to postpone the usual summer sales season, , but remains low by historical standards.

“For computer games and computer games consoles, Prices in this category overall rose by 1.8% this year, compared with a fall of 4.7% a year ago,” the ONS said.

The core CPI reading surged to 1.4 percent in June from a year earlier, compared to both prior and predicted readings of 1.2 percent.

The British pound traded higher versus the US dollar at 1.2607 after it found support yesterday following its fall to a one-week low of 1.2479.

Meanwhile, External BOE MPC Member Silvana Tenreyro is speaking at a webinar series hosted by the London School of Economics. 

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