According to the United Kingdom's Office for National Statistics the Consumer Price Index stood at 2 percent (Year-on-Year), lesser than expected as the analysts foresaw it to rise by 2.2 percent and after increasing by 2.5 percent in June. In monthly terms, the consumer price index was at 0 percent, also lower than expected as the analysts foresaw it to be at 0.3 percent, and after being at 0.5 percent in the previous month.
Excluding food and energy prices, the index went up by 1.8 percent in yearly terms, below the analysts' expectations as they foresaw it to climb by 2.2 percent and after going up by 2.3 percent in June.
On the other hand, the retail price index rose more than expected, at 3.8 percent in July and after being at 3.9 percent in June. The surveyed analysts expected it to rise by 3.6 percent.
Many link the recent rise in prices, which is over the bank of England's long-run inflation target, to the increasing transportation costs associated with the reopening of the UK economy. Transportation costs went up by 0.85 percent during the period, which is the largest rise of any sector in a decade.
“Clothing and footwear, and a variety of recreational goods and services made the largest downward contributions to the change in the CPIH 12-month inflation rate between June and July 2021,” stated the Office for National Statistics in its report, “Price rises for second-hand cars, compared with falls a year ago, resulted in the largest, partially offsetting, upward contribution to change,” they added.
Recently the Office for National Statistics had reported that wages went up by 7.4 percent in the second quarter, which caused fears of persistent inflationary effects. 953,000 new vacancies were opened during that period, which is about 168,000 more than the first quarter of 2020.
The United Kingdom continues struggling with the spread of the Delta variant of the covid-19 virus. 6,322,241 cases have been reported since the beginning of the pandemic, as well as 131,149 total deaths making the United Kingdom one of the most affected countries in Europe, only below Russia and France.
The government has already distributed 88 million dosages of the vaccine, while 40.7 million are already fully vaccinated, which accounts for 61.1 percent of the total population. The vaccination of children aged 12 to 17 have been recently approved by the ministry of health
By 7:20 GMT the Pound Sterling went up against the US Dollar by 0.08 percent, hitting the 1.3751 level.