UK Inflation Falls to 0%

The rate of UK Consumer Prices Index inflation fell to 0% in June, from 0.1% in May, official figures show.

Falls in clothing and food prices were the main contributors to the change in the rate, the Office for National Statistics (ONS) said.

The ONS said the rate was also affected by a smaller rise in air fares in June than a year ago.
Bank of England governor Mark Carney has said he expects inflation to remain low in the immediate short term.

But the Bank expects it to start picking up around the turn of the year.

The rate of Retail Price Index (RPI) inflation – which includes housing costs such as mortgage interest payments and council tax – was 1% in June, unchanged from May.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza