Markets
U.K. Inflation Rate Surprisingly Drop in June
- U.K Inflation Rate Surprisingly Drop in June
The U.K. inflation rate unexpectedly slowed in June, even with the lower exchange rate and rising costs of imported goods.
The inflation rate rose 2.6 percent in June, down from 2.9 percent recorded in May, according to Office for National Statistics. Making it the first drop since October.
Weak pace of increase would allow the Bank of England to keep interest rate near zero while accessing the economic reaction to the ongoing Brexit talk.
Core inflation excluding volatile food and energy declined from 2.6 percent in May to 2.4 percent in June.
The pound sterling reversed its early gains to $1.3024 as of 9:37 a.m. in London.