UK inflation slows to 7.9% in June

LONDON - Inflation in the United Kingdom slowed to 7.9 percent in the 12 months to June, the country's Office for National Statistics (ONS) said on Wednesday.

This was down from 8.7 percent in May, the ONS said.

Falling prices for motor fuel had the strongest impact on the Consumer Price Index (CPI). Meanwhile, although food prices rose, the jump was less than in June 2022.

"Inflation slowed substantially to its lowest annual rate since March 2022, driven by price drops for motor fuels. Meanwhile, core inflation also fell back after hitting a 30-year high in May," ONS Chief Economist Grant Fitzner said.

"Although costs facing manufacturers remain elevated, especially for construction materials and food items, the pace of growth has fallen across the last year with the overall cost of raw materials falling for the first time since late 2020," Fitzner added.

The UK has been in the grip of high inflation for more than a year. Households have felt the squeeze amid a worsening cost-of-living crisis. Widespread strikes broke out during the summer of 2022, and pay disputes are ongoing.