UK inflation slows in July

UK inflation slowed faster than expected in July at an annualised rate of 2% which was smaller than the 2.5% inflation print in June and smaller than the 2.1% inflation which was expected for July. Main areas where inflation slowed were in consumer goods such as clothing and recreational goods. This was however offset by second-hand car inflation which surged 14% year on year against the backdrop of semiconductor shortages which have hampered the supply of new cars. Forecasts are for inflation to begin to creep higher again in Q3 and Q4 of 2021 which remains down to supply side bottle necks remaining in the economy and the global economy.