UK inflation slows more than expected to 2%, first easing since February – business live | Business
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UK inflation has slowed more sharply than expected in July, with the annual rate falling to 2% from 2.5% in June, the Office for National Statistics said. Economists had pencilled in a rate of 2.3%.
It is the first easing in inflation since February, but economists said the drop is likely to be temporary. Prices were unchanged between June and July, following a monthly gain of 0.4% in June.
The biggest upward pressure came from transport costs including higher petrol prices, along with price rises for second-hand cars, compared with falls a year ago. The ONS said demand for used cars had risen as the global semiconductor shortage held back the production of new cars, and there are fewer one-year-old cars coming to the market now because of a fall in new car registrations last year.
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