The UK’s inflation rate has increased to 2.2% for the first time this year, as reported by BBC. This rise, which is above the Bank of England’s target of 2%, is mainly due to gas and electricity prices falling less than last year. Although this increase is less than many experts expected, it means prices are rising faster than recent months, but not as fast as they did in 2022 and 2023.
The Bank of England, which recently cut its interest rate from 5.25% to 5%, is expected to consider further rate cuts. Experts suggest a cut in September is likely, though some caution that inflation pressures may still be a concern.
Businesses, like Livia Marrocco’s restaurant, have felt the impact of rising costs but are seeing improvement with more customers. Inflation surged to 11.1% due to the Ukraine war and pandemic-related issues but had been decreasing until June.
Recent figures show house prices rising by 2.7% over the year, with the average home in England now costing £305,000. Despite these price increases, food price inflation has settled to 1.5% in July.
Overall, while inflation is ticking up slightly, it’s still relatively moderate compared to previous highs.
Credit : BBC
https://www.bbc.com/news/articles/ceq59pqr9qxo