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The UK Consumer Prices Index (CPI) 12-month rate came in at 2.5% in July, a tad firmer from June’s 2.4% and matching the 2.5% print anticipated, the UK Office for National Statistics (ONS) reported on Wednesday.  

Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at 1.9% y/y, same as that booked in June while matching the consensus forecast.

The monthly figures showed that the UK consumer prices steadied at to 0.0% in July, meeting 0.0% expectations.

Main Points (via ONS):

“Rising prices for computer games and transport fares produced the largest upward contributions to change in the 12-month rate between June and July 2018, although computer game prices tend to be highly variable from month to month.

The upward effects were offset by falls in prices for clothing and footwear and the removal of initial charges for investment in some unit trusts.

Prices for clothing and footwear fell by 0.4% between July 2017 and July 2018, the first time the 12-month rate has been negative since October 2016.”