Inflation falls to 7.9% in bigger than expected drop

Published

2 years ago

July 19, 2023

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The rate of price rises has dropped to 7.9% in the year up to June, according to the Office for National Statistics (ONS).

The consumer price index (CPI) measure of inflation shows prices are still rising, just at a slower pace than before, as the rate fell from 8.7% in the year to May.

Another measure of inflation, closely watched by the Bank of England when deciding whether to increase interest rates, also fell.

Core inflation – the rate of price rises that excludes food and fuel – dropped to 6.9%. The rate had been increasing since January this year.

The majority of analysts now expected that the Bank will only increase the base interest rate to 5.25% early next month. Prior to the inflation announcement an increase to 5.5% was seen as the most likely outcome.

Also changed since Wednesday morning’s inflation data is the high the base interest rate might reach. It had been expected to top 6% but is now estimated to peak at 5.75%.

Interest rates have been hiked 13 times in a row in an effort to dampen economic activity, take money out of the economy by increasing savings, and bring inflation down to 2%.

A higher rate set by the Bank means more expensive borrowing and higher mortgage bills.

Economists had thought core inflation would remain stuck at the same level as the month before – 7.1% – and that CPI would only fall to 8.2%.

But falling petrol and diesel costs, and a slowing down in food price rises, led to the surprise drop.

The rate of food inflation fell to 17.3% in June from 18.3% in May.

Also falling was the cost of raw materials – they dropped 2.7% in price – the first time they’ve actually become cheaper since late 2020, the ONS said.

The price of goods leaving factories grew 0.1%, down from a rise of 2.7%.

Prices have been rising since the later pandemic years as supply chain problems and difficulty sourcing goods pushed costs up. The war in Ukraine and ensuing energy crisis saw gas bills at record highs which pushed up costs across the economy.

As a result, inflation reached a high of 11.1% in October.

Chancellor Jeremy Hunt said: “Inflation is falling and stands at its lowest level since last March; but we aren’t complacent and know that high prices are still a huge worry for families and businesses.

“The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this year.”

UK

Man arrested on suspicion of murder after woman shot dead in Talbot Green, South Wales

Published

1 hour ago

March 10, 2025

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Man arrested on suspicion of murder after woman shot dead in Talbot Green, South Wales

A man has been arrested on suspicion of murder after a 40-year-old woman was shot dead in South Wales.

The woman was found with serious injuries just after 6pm on Sunday and died at the scene despite the efforts of emergency services.

She was discovered in the Green Park area of Talbot Green, a town about 15 miles west of Cardiff.

A 42-year-old local man is in police custody.

Detective Chief Inspector James Morris said: “I understand the concern this will cause the local community, and I want to reassure people that a team of experienced detectives are already working at pace to piece together the events of last night.”

South Wales Police said a number of crime scenes have been set up and road closures are in place.

UK

Drivers ‘confused’ by transition to electric vehicles, ministers warned

Published

1 hour ago

March 10, 2025

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Drivers 'confused' by transition to electric vehicles, ministers warned

UK drivers are “confused” by the country’s electric car transition, ministers are being warned.

Although most drivers are not hostile towards electric vehicles (EVs), many are confused about what changes are coming and when, according to new research from the AA.

In a survey of more than 14,000 AA members, 7% thought the government was banning the sale of used petrol and diesel cars.

Around a third thought manual EVs exist, despite them all being automatic.

More than one in five said they would never buy an EV.

The government’s plan for increasing the number of electric vehicles being driven in the UK focuses heavily on increasing the supply of the vehicles.

In 2024, at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK had to be zero-emission, which generally means pure electric.

Each year, those percentages will rise, reaching 80% of new cars and 70% of new vans in 2030.

Manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year.

By 2035, all new cars and vans will be required to be fully zero emission, according to the Department for Transport.

Second-hand diesel and petrol cars will still be allowed to be sold after this date, and their fuel will still be available.

There are more EVs – but will people buy them?

In February, 25% of new cars were powered purely by battery and in January, they made up 21% of all new cars registered in the UK.

But despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks.

The AA suggested the government’s plan focuses on “supply but does little to encourage demand for EVs”.

It called on ministers to co-ordinate a public awareness campaign alongside the motoring industry which directly targets drivers who doubt the viability of EVs.

“Our message to government is more needs to be done to make EVs accessible for everyone,” said Jakob Pfaudler, AA chief executive.

Which? head of consumer rights Sue Davis said: “When it comes to making sustainable choices such as switching to an electric car, our research shows that people are often held back by high costs, complex choices or uncertainty.

“The government needs to provide the right information on electric vehicles and other sustainable choices so that people have the confidence to switch.”

A Department for Transport spokesperson said: “We’re investing over £2.3bn to help industry and consumers make a supported switch to EVs.

“This includes installing a public charge point every 28 minutes, keeping EV incentives in the company car tax regime to 2030, and extending 100% first-year allowances for zero-emission cars for another year.

“Second-hand EVs are also becoming cheaper than ever, with one in three available under £20,000 and 21 brand new models available for less than £30,000.

“We’re seeing growing consumer confidence as a result.”

UK

Man charged after climbing Big Ben’s Elizabeth Tower

Published

1 hour ago

March 10, 2025

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Man charged after climbing Big Ben's Elizabeth Tower

A man has been charged after climbing up the tower of Big Ben, the Metropolitan Police has said.

Daniel Day, 29, of Palmerston Road, Westcliff-on-Sea, Essex, faces charges of intentionally or recklessly causing a public nuisance and trespassing on a protected site.

He will appear at Westminster Magistrates’ Court later today.

Police were called to reports of a man climbing up Elizabeth Tower at 7.24am on Saturday.

The man was carrying a Palestinian flag and remained barefoot on a ledge for more than 16 hours before being lifted to the ground in a cherry picker just after midnight.

Westminster Bridge was forced to close to traffic during the morning, as tourists in central London stood around watching the spectacle.

Police said specialist officers worked with the fire brigade “to bring this incident to a close as quickly as possible whilst minimising risk to life”.