CPI and CPIH rates slow down, food prices ease but remain high

  • Inflation rate fell to 7.9% in June from 8.7% in May
  • CPI including owner occupiers’ housing costs rose by 7.3% in the 12 months to June 2023
  • Falling prices for motor fuel led to the largest downward contribution to monthly change
  • Core CPI excluding energy, food, alcohol and tobacco rose by 6.9% in the 12 months to June 2023
  • CPI goods annual rate slowed from 9.7% to 8.5%
  • CPI services annual rate eased from 7.4% to 7.2%
  • Food price inflation eased slightly but remains high
  • Retailers’ efforts to curb price rises are paying off, says British Retail Consortium
  • Supply chain volatility persists due to geopolitical events

The UK’s inflation rate dropped to 7.9% in June from 8.7% in May, according to the latest Consumer Prices Index (CPI) data from the Office for National Statistics (ONS). The CPI including owner occupiers’ housing costs rose by 7.3% in the year to June 2023. Falling motor fuel prices contributed significantly to this decline. Core CPI, excluding energy, food, alcohol and tobacco, increased by 6.9%, marking a thirty-year high in May but decreasing in June. The CPI goods annual rate fell from 9.7% to 8.5%, while the services rate eased from 7.4% to 7.2%. Retailers’ efforts to reduce prices have led to a third consecutive month of food price drops, including cheese, fruit, and fish. Non-food items like children’s clothing and household textiles also saw decreases due to summer discounting. However, supply chain volatility continues as Russia’s decision on the Black Sea Grain Initiative may impact staple costs.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information from reliable sources such as the Office for National Statistics (ONS) and quotes from experts in the field. It presents data on inflation rates, breaks down different components of the data, and includes expert opinions without any personal perspective or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about inflation rates and their causes, with evidence from the Office for National Statistics and expert opinions. It stays on topic and does not dive into unrelated territories. However, it could benefit from more analysis or exploration of potential future consequences or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Inflation rates impact financial markets and companies as they affect consumer spending and business profitability.
Financial Rating Justification: The article discusses changes in inflation rates, which can have significant effects on the economy, consumer behavior, and company profits. This information is relevant to financial topics and can impact various industries and stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in this article.

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