UK inflation fell by more than expected to 7.9% in the 12 months to June, according to latest figures released this morning.
Core inflation which strips out volatile energy and food prices fell from 7.2% to 6.9% giving some relief to the Government seeing prices heading in the right direction
However inflation is still much higher than the USA and EU average
Falling prices for motor fuel led to the largest downward contribution to the monthly change in CPIH and CPI annual rates, while food prices rose in June 2023 but by less than in June 2022, also leading to an easing in the rates said the Office for National Statistics
“While it is positive to see inflation falling, it remains stuck above 7% for the sixteenth consecutive month.” says Ben Harrison, Director of the Work Foundation at Lancaster University,
“This is prolonging the living standards squeeze that has been a particular disaster for the 6.2 million people in severely insecure work. While we have seen above inflation pay rises for finance workers, sectors such as retail and hospitality – where many insecure workers are employed – are lagging behind.
“Not only are half of insecure workers earning less than Joseph Rowntree Foundation’s Minimum Income Standard of £25,500 per year, but Work Foundation research shows that one in three are uncertain on how much they’ll earn over the next three months. That’s because those in insecure work are four times more likely to see their shifts change at the last minute which often carries a pay penalty.
“These latest inflation figures will put the Bank of England under pressure to keep interest rates high. Any further mortgage and rent hikes could be a hammer blow for those stuck in insecure and low-paid work.”
