That’s before Brexit comes to effect
Since November 2014, the prices are increasing at a very rapid pace, which is extremely worrying. Market analysts are warning that things could get even worse. However, only one thing got cheaper in the otherwise poor conditions. Looks like it could just be the calm before the storm.
The Office for National Statistics (ONS) has said Consumer Price Index (CPI) inflation was up from 0.3% in May, in June. It was the 15 month high record and the cost of living has come due to high flight prices that went up more than 10% in months of May and June. However, ONS has said, the impact is too early to see due to inflation caused by the plunge of the pound due to Brexit.
More Euro pain for Brits
Phil Gooding, ONS statistician, has said, “The rising cost in running flights in and across Europe, which is mainly increased due to the Euro football championship, could be the sole reason for increase in inflation.” He also added, “These figures were collected before the EU referendum occurred and the recent fall of the pound should have no impact on them.”
Wise words indeed, because the growing cost of oil, which is feeding through petrol prices at the moment are also helping nudge up CPI.
- In May and June, the overall transport prices increased to more than 1%, last year it was just increased by 0.2%.
The cost of petrol and diesel raised more than 2p per litre, in months of May and June, prices of filling up at the pump had an upward impact on CPI.
Is anything becoming cheaper?
The good news or slight happy news is that, the cost of household equipment and maintenance, furniture, has come down. Their overall prices were going down 0.3% between May and June. The reason for that is because the falling price tags for furnishings, furniture, and kitchen units.
The CPI figures come with a very poor result for the UK economy and many economists are cutting their growth forecasts and some writing a potential recession following the Brexit vote.
