According to the monthly report from the Office for National Statistics (ONS), fuel prices, which had soared last year, were the main factor behind the slowdown in UK inflation. Likewise, food prices also experienced a slowdown, albeit to a lesser extent. However, despite this moderation, the UK consumer price index remains the highest among the G7 countries, which include the United States, Japan, France, Germany, Italy, and Canada.
The level of inflation in the UK remains higher and more persistent than in other Western economies, suggesting that the Bank of England may take more aggressive action compared to other leading central banks, according to Ipek Ozkardeskaya, an analyst at Swissquote Bank.
In comparative terms, inflation in the US was 3%, and in France it was 4.5% in June. This shows a significant difference with the UK, where inflation remains higher despite the recent slowdown.
In conclusion, although inflation in the UK has seen a slowdown due to lower fuel prices and a slower acceleration in food prices, it is still higher than in other G7 countries. This situation could lead the Bank of England to take more aggressive action to address persistently high inflation in the country.