UK Inflation Remains at 2%
London, 17 July 2024
Even though projections pointed to 1.9%, the UK's annual inflation rate remained stable in June 2024 at 2%, the same as it was in May and holding at 2021 lows. In comparison to 5.8%, the cost of meals and lodging—primarily hotel prices—accounted for the highest increasing contribution.
Additionally, the cost of transportation increased more quickly (0.9% vs.0.5%); this was primarily due to the cost of air travel, maintenance, and repairs for personal transportation equipment.
Between May and June 2024, the average cost of gasoline decreased by 3.0 pence per litre, rising from 143.0 pence per litre in June 2023 to 145.8 pence per litre.
Conversely, the biggest decline was caused by footwear and apparel (1.6% vs. 3%), primarily clothing. Food and non-alcoholic drink inflation also decreased (1.5%, lowest since October 2021 against 1.7%), especially for bread and cereals, pork, and fruit.
As services (5.7%) and recreation and culture (3.9%) saw stable inflation, housing and utility prices (-4.7% vs. -4.8%) continued to decline.
Stats
In June, the United Kingdom's inflation rate of 2 percent did not alter. From 1989 to 2024, the UK's inflation rate averaged 2.83 percent; it peaked in October 2022 at 11.10 percent and fell to a record low of -0.10 percent in April 2015.
The United Kingdom Inflation Rate is provided on this page along with historical data, forecasts, charts, statistics, an economic calendar, and news. The most recent update to the United Kingdom Inflation Rate's statistics, historical chart, projections, and release timetable was made in July 2024.
Forecast
In June, the United Kingdom's inflation rate of 2 percent did not change. The global macro models and analysts at Trading Economics predict that by the end of this quarter, the inflation rate in the United Kingdom will be 2.20 percent. The econometric models of Trading Economics predict that the United Kingdom's inflation rate will eventually trend at 1.70 percent in 2025. (Source: Trading Economics)
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