United Kingdom pay growth slows to six-month low

As Brits Were Busy Watching World Cup Retailers In UK See Low Sales

The Pound continued to languish around the 1.30 level against the US Dollar yesterday, with investors dialling back bets on a Bank of England interest rate hike following Wednesday's soft inflation print.

Consumer price index (CPI) inflation, the measure targeted by the Bank, has now remained at 2.4 per cent for three months in a row, according to data published today by the Office for National Statistics (ONS).

Ruth Gregory, senior United Kingdom economist at Capital Economics, said: "While the lower-than-expected rate of inflation in June means that a hike in interest rates in August is a little less clear cut, we nonetheless think that it remains more likely than not".

While inflation in vegetable prices more than tripled in pace from May's 2.51% to 8.12% in June, the annual gains in potato prices have been in a steep upward spiral for five straight months and exceeded 99% in June.

Bank Governor Mark Carney earlier this month said that a revision in the first quarter growth rate from 0.1% to 0.2% gave him "greater confidence" that softer United Kingdom activity in the first three months of the year was "largely due to the weather, not the economic climate".

The UK's rate of inflation has been steadily dropping since the beginning of 2018.

Even so, former BOE policy maker Andrew Sentance, who is now a senior economic adviser at PwC, said it "still remains sensible" to raise rates next month. Prices were expected to grow by 10.1 percent.

United Kingdom inflation unexpectedly held at 2.4 percent last month as cheaper clothing and computer games offset the rising cost of filling up a vehicle. Core inflation was significantly weaker than expected at 1.9% year on year, which will make it more hard for the Bank of England to raise rates, particularly given a backdrop of Brexit and trade uncertainty. There was also downward pressure from computer games, toys and hobbies.

Prices usually fall between May and June as summer sales get under way, but the 2.3% drop this year compares with a 1.1% fall a year ago, and is the largest decline during the same period since 2012.

Meanwhile, monthly input price inflation eased notably to 0.2 percent from 3.3 percent in May.

Alistair Wilson, head of retail platform strategy at Zurich, added: "Britain's inflation rate holding constant will be a relief for households given the slowdown in wage growth in the last quarter".

Mr Hardie said: "House prices rose at their slowest pace in almost five years due to slow annual growth in the South and East of England".

Related news:

Hot News

isis-killer-beheading-video-story-top José Mourinho fears Alexis Sánchez will miss United States tour after visa issue
Jul 19, 2018 - 16:31
We lost Michael Carrick and I think Fred is the kind of player we need to complement the qualities of our midfield players. I'm not anxious if we lose badly", continued Mourinho.

isis-killer-beheading-video-story-top Walmart Reportedly Eyeing Low-Cost Streaming Service to Rival Netflix, Amazon
Jul 19, 2018 - 16:12
The total average viewing time on all devices is five hours, one minute, with about a third of that being to online content.

isis-killer-beheading-video-story-top Nelson Mandela’s Houghton home to be five-star hotel
Jul 19, 2018 - 16:11
I know her smile. "Act like a humanitarian, act like a woman!" Very different from the one last week, I might add - but that's by the way.

isis-killer-beheading-video-story-top French fans give hero welcome to "Les Bleus" World Cup champions
Jul 18, 2018 - 16:17
Notre-Dame des Champs becomes Notre Didier Deschamps while one of the central stops is renamed Deschamps Elysées-Clémenceau. The team's appearance on the Champs-Elysees will be followed by a reception at the presidential palace.

isis-killer-beheading-video-story-top Spurs, Raptors talking Kawhi, DeRozan trade
Jul 18, 2018 - 14:53
He's under contract for two more seasons and owed $41.4 million, but has a player option for 2019-20. Because Leonard is a player teams fear could be a one-year rental, many offers are modified.

isis-killer-beheading-video-story-top Trump says 'big results will come' with Putin
Jul 18, 2018 - 14:35
Trump does not seem to fathom that the problem with U.S. -Russia relations is not a lack of effort on the part of U.S. presidents. Trump said that Putin had been "extremely strong and powerful" in his denial of attempting to influence America's elections.

isis-killer-beheading-video-story-top Chelsea to re-sign Cech when Courtois joins Real Madrid
Jul 18, 2018 - 14:12
Thibaut Courtois' drastic development out on-loan at Atletico Madrid meant that he could no longer be ignored by the club. Italy midfielder Jorginho followed Sarri to Stamford Bridge in a reported £50 million (A$89 million) deal.

isis-killer-beheading-video-story-top Pakistan opens terrorism investigation against ex-PM's party 10 days before election
Jul 18, 2018 - 14:03
The PML-N workers joined in the rally from different points in Lahore . There were no immediate reports of injuries. The NAB team took them into custody.

isis-killer-beheading-video-story-top Poll shows how Americans reacted to Trump’s ‘disastrous’ summit with Putin
Jul 18, 2018 - 10:18
Trump maintained Tuesday's summit with Putin went "even better" than his meeting with North Atlantic Treaty Organisation allies. McConnell's words came just minutes before President Donald Trump was expected to speak about the Helsinki summit on Monday.

isis-killer-beheading-video-story-top Outrage after Chicago police fatally shoot man
Jul 16, 2018 - 13:14
Guglielmi said the crowd was incited by false reports , including that the man was unarmed or had a concealed carry permit. Police say officers on patrol spotted what they suspected was a gun in Augustus' waistband Saturday evening.

isis-killer-beheading-video-story-top Sarah Palin fails to see amusing side of comedian Sacha Baron Cohen
Jul 16, 2018 - 13:11
The former Governor of Arkansas and Republican Vice Presidential candidate is known for her outspoken anti-LGBT views. Palin criticized the comedian for tricking her into an interview for his new Showtime series.

Three Kansas City Police Officers Shot; Suspect Barricaded in Home
Jul 16, 2018 - 13:11
The newspaper reported that all three officers were expected to live. "At that point two of our officers were shot", Smith said . Officers were then called to the area of 30th and Topping Avenue where they exchanged gunfire with the suspect.

isis-killer-beheading-video-story-top Canada, U.S. express concern at North Atlantic Treaty Organisation over Russian pipeline into Germany
Jul 16, 2018 - 10:17
Nord Stream AG will temporarily shut down both lines of its gas pipeline for two weeks due to routine maintenance works. When it comes to being held " captive " by the Kremlin, Trump is more so than Germany.

Chicago Police Shoot Man 'Exhibiting Characteristics Of An Armed Person'
Jul 15, 2018 - 19:30
Issa reported that the fighting started after police officers moved their defense line forward. "It got a little bit out of hand". Footage taken by local reporters show police rushing civilians with batons and shoving journalists covering the demonstrations.

isis-killer-beheading-video-story-top Queen misses christening for Prince Louis
Jul 15, 2018 - 19:28
Following the service, guests were invited to a private tea at Clarence House, home to Prince Charles and his wife, Camilla . The royal couple also named six close friends and family members to be godparents to Prince Louis , who was born in April.