UK consumer price inflation slowed sharply in July to the Bank of England's target, preliminary data from the Office for National Statistics showed Wednesday. The consumer price index rose 2.0 percent year-on-year following a 2.5 percent increase in June. Economists had forecast a 2.3 percent inflation. Headline inflation slowed for the first time in five months. Core inflation, which excludes prices of energy, food, alcoholic beverages and tobacco, slowed to 1.8 percent from 2.3 percent in the previous month. Economists had forecast 2.2 percent. Clothing and footwear, and a variety of recreational goods and services made the biggest downward contribution to inflation, ONS said. Meanwhile, higher prices of second-hand cars versus declines last year, led to the largest, partially offsetting, upward contribution to change, the agency added.
Inflation rates continue to be influenced by the low base effect due to the coronavirus lockdown in spring 2020, ONS said.
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.