2020.07.1506:37:00UTC+00UK Inflation Rises Unexpectedly In June

UK consumer price inflation accelerated unexpectedly in June, data from the Office for National Statistics showed Wednesday.

Consumer price inflation rose to 0.6 percent from 0.5 percent in May. The rate was expected to slow to 0.4 percent.

Confounding expectations for a decline of 0.2 percent, consumer prices gained 0.1 percent after remaining unchanged in May.

Excluding energy, food, alcoholic beverages and tobacco, core inflation advanced to 1.4 percent from 1.2 percent in May. The rate was forecast to remain unchanged at 1.2 percent.

Prices for games and clothing provided upward contributions to inflation, while food prices provided downward contribution in June.

Another report from ONS showed that output prices dropped 0.8 percent on a yearly basis, slower than the 1.2 percent decrease in May and the expected drop of 1.1 percent. This was the third consecutive month that the rate has been negative.

Month-on-month, output prices advanced 0.3 percent, reversing a 0.2 percent drop in May. Economists had forecast a monthly growth of 0.2 percent. This was the first time the monthly rate has been positive since January 2020 and the highest since July 2019.

Input prices fell by 6.4 percent on year in June compared to a 9.4 percent drop in May. Economists had forecast a 6.5 percent fall.

On a monthly basis, input prices were up 2.4 percent in June, faster than the 0.9 percent rise logged in May but slower than the 3 percent rise economists' had forecast.