In the News
UK Economy - Inflation Falls to Below 8%
19th July 2023
A welcome fall in UK inflation lifts hopes that interest rates may peak at six per cent or less in the coming weeks and months. UK annual CPI inflation rate dropped from 8.7% in May 2023 to 7.9% in June. Economists had expected 8.2%. But food price inflation is 17% - the highest rate of inflation among G7 countries.
Here is some reaction and comment.
One of the the key market borrowing rates for the UK mortgage market - 2 year Gilt yields - has chunky 30 basis points fall in the wake of the June's better than expected inflation figures... pic.twitter.com/5Z46aXQmbf
— Ben Chu (@BenChu_) July 19, 2023
"Inflation going down does not mean prices are going down, it means they're not going up as quickly"
— The London Economic (@LondonEconomic) July 19, 2023
This is why politicians saying the way to help people who can't pay their bills or buy food is to bring inflation down is nonsense! #GMB pic.twitter.com/aIRYUoyh4T
"For the 5.7 million low-income families in this country already forced to eat less or skip meals, inflation at close to 8% and food inflation above 17% will come as precious little comfort overall."
— Joseph Rowntree Foundation (@jrf_uk) July 19, 2023
💬@alfie_stirling on this morning's inflation figureshttps://t.co/RG78L7ZKAu
The Guardian wonders what the next few years for the car industry if we revert to higher interest rates. Higher interest rates mean less borrowing and if people simply no longer decide to regularly upgrade their cars, then the sector is going to suffer. And any decline in spending is going to have a multiplied effect.
Please read: Will high interest rates burst the new car bubble and will drivers hand back keys?Jasper Jolly
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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