UK June CPI +9.4% vs +9.3% y/y expected

  • Prior +9.1%
  • Core CPI +5.8%vs +5.8% y/y expected
  • Prior +5.9%

UK consumer inflation rises further in June and this just reaffirms that the reading is on its way towards double-digits, as per the trajectory that the BOE had anticipated. On the month itself,  inflation  rose by 0.8% with the details revealing that housing and household services contributed the most to the increase in prices.

Producer prices also moved higher with input prices rising by 1.8% on the month and output prices rising by 0.8% on the month. This will do little to dissuade the BOE from hiking by 50 bps in August.