U.K. inflation cooled more than economists forecast in July, giving the Bank of England room to keep its key interest rate at a record low.
The rate of consumer-price growth fell to 1.6 percent from 1.9 percent in June, the Office for National Statistics said today in London. Economists had forecast 1.8 percent, based on the median of 32 estimates in a Bloomberg survey. Separate data showed pipeline inflation pressure eased, with factory-gate prices posting the first annual decline in almost five years.
The BOE kept its key rate at 0.5 percent this month and Governor Mark Carney said it’s not yet time to tighten policy. Officials on the Monetary Policy Committee are trying to balance a strengthening recovery against subdued earnings and inflation that’s below the 2 percent target as they debate when to begin exiting emergency stimulus.
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