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Economic Report

July 15, 2020, 10:28 a.m. EDT

U.K. consumer prices edge up in June to the second-slowest growth in four years

Consumer prices in the U.K. edged up in June though they were the second-lowest in nearly four years and the first growth since January.

Consumer prices rose 0.6% year-over-year in June, compared to 0.5% growth in May. Consensus expectations were for 0.4% growth, the Office for National Statistics said.

Rising recreation and culture costs — computer games, mostly — offset lower motor fuel and food and beverage prices, the statistician said.

“Price growth has generally been strong in these areas in recent months with lockdown driving elevated consumer demand for these goods even as international supply chains have been under pressure,” said economists at Citi.

New U.K. government initiatives to cut the value-added tax and to provide discounts to diners also will weigh on CPI figures in the coming months, the Citi economists noted.

Link to MarketWatch's Slice.