<h2>Key Points:</h2> ·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2023, the Consumer Prices Index including owner occupiers' housing costs (CPIH) recorded a 7.3% increase over the previous 12 months, a slight decrease from May's 7.9%.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On a monthly basis, CPIH saw a 0.2% rise in June 2023, compared to a 0.7% increase in June 2022.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Consumer Prices Index (CPI) experienced a 7.9% increase over the 12 months leading up to June 2023, down from May's 8.7%.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Monthly, CPI rose by 0.1% in June 2023, as opposed to a 0.8% rise in June 2022.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decline in motor fuel prices had the greatest impact on the decrease in both CPIH and CPI annual rates, while food prices rose in June 2023, albeit at a slower pace than in June 2022, contributing to a reduction in the inflation rates.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no significant factors counteracting the overall rate change.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core CPIH, which excludes energy, food, alcohol, and tobacco, increased by 6.4% over the 12 months leading up to June 2023, slightly down from May's 6.5%. May's rate was the highest in over three decades. The annual rate of CPIH goods slowed from 9.7% to 8.5%, while the CPIH services annual rate remained unchanged at 6.3% from May.·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core CPI, excluding energy, food, alcohol, and tobacco, increased by 6.9% over the 12 months leading up to June 2023, a decrease from May's 7.1%, which was the highest rate since March 1992. The CPI goods annual rate slowed from 9.7% to 8.5%, while the CPI services annual rate eased from 7.4% to 7.2%. <h2>Annual CPIH and CPI inflation rates eased between May and June 2023</h2><h2>CPIH, OOH component and CPI annual inflation rates for the last 10 years,</h2> <img src="https://cdn.forexoverflow.io/images/1689788941987-m68y8wyo7e6jj6z-figure-1-annual-cpih-and-cpi-inflation-rates-eased-between-may-and-june-2023-1.png"> Source: Consumer price inflation from the Office for National Statistics<h2> </h2><h2>Consumer price inflation rates</h2> In the 12 months leading up to June 2023, the Consumer Prices Index including owner occupiers' housing costs (CPIH) witnessed a 7.3% increase, showing a slight decline from the previous month's 7.9% and a decrease from the peak of 9.6% reached in October 2022. Based on our indicative modelled consumer price inflation estimates, the October 2022 rate was the highest in over four decades, with the CPIH National Statistic series commencing in January 2006. The rate observed in June 2023 was the lowest since March 2022. The decrease in the annual rate between May and June 2023 can be attributed to a 0.2% monthly price increase, compared to a 0.7% rise during the same period the previous year. Similarly, the Consumer Prices Index (CPI) experienced a 7.9% increase over the 12 months leading up to June 2023, down from May's 8.7%, and a decrease from the peak of 11.1% in October 2022. Our indicative modelled consumer price inflation estimates suggest that the October 2022 peak represented the highest annual inflation rate since 1981, with the CPI National Statistic series beginning in January 1997. The rate observed in June 2023 was the lowest since March 2022. The easing in the CPI annual rate between May and June 2023 was the result of a 0.1% monthly price increase, compared to a 0.8% rise during the same period the previous year. The primary factors influencing the annual inflation rates for both CPIH and CPI align where applicable. However, the owner occupiers' housing costs (OOH) component, which accounts for 16.0% of the CPIH, primarily drives the differences observed between CPIH and CPI inflation rates.

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Uncover the unparalleled decline in UK consumer price inflation as June 2023 sets a new record low since March 2022.

Unprecedented Drop: June 2023 Sees UK's Lowest Inflation Rate Since March 2022"

UK Consumer Price Inflation Hits Record Low in June 2023

<h2>Key Highlights</h2> 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spirax-Sarco experiences an upward surge following UBS's upgraded rating.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liontrust encounters a dip in its assets under management (AUMA), leading to a decline in its market performance.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The upcoming week holds the release of the UK Consumer Price Index (CPI), a crucial economic indicator.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FTSE 100 index observes a marginal decrease of 0.1%, while the FTSE 250 index records a more substantial decline of 0.4%. The FTSE 100, one of Britain's leading stock market indices, experienced a slight decline on Friday despite a positive week. Although industrials showed gains, the index was weighed down by a drop in oil stocks. Despite this, the FTSE 100 recorded its best weekly performance in over three months, while the FTSE 250 had its strongest week in eight months. The optimism surrounding the U.S. interest rates reaching their peak contributed to the positive sentiment. <h2>Oil Stocks Weigh Down FTSE 100</h2> On Friday, the blue-chip FTSE 100 index (.FTSE) witnessed a marginal decline of 0.1%. This dip was mainly attributed to a 1.7% fall in oil stocks (.FTNMX401010), which were influenced by lower crude prices. <h2>Spirax-Sarco Engineering Receives UBS Upgrade</h2> Spirax-Sarco Engineering (SPX.L), a prominent valve maker, saw its shares rise by 3.1% after UBS upgraded the company's rating from "neutral" to "buy." This upgrade from a reputable financial institution contributed to the stock's positive performance. <h2>Weekly Gains Amid Global Optimism</h2> Despite the minor losses observed during the session, the FTSE 100 achieved its best weekly performance in more than three months. Additionally, the midcap FTSE 250 index recorded its strongest week in eight months. This positive trend was driven by global market rallies as evidence of slowing inflation in the United States raised hopes of the Federal Reserve nearing the end of its rate-hike cycle. <h2>Looking Towards UK CPI Data</h2> Investors eagerly await the release of the UK June consumer prices data, scheduled for the following week. This data will provide valuable insights into the Bank of England's (BoE) stance on monetary policy tightening. The general trend among developed economies indicates a rapid decline in Consumer Price Index (CPI), but the UK has experienced stickier inflation. Consequently, it is expected to take longer for the UK to bring inflation down. <h2>Inflationary Pressures and Liontrust's Decline</h2> The head of Britain's Office for Budget Responsibility (OBR) expressed concerns over inflationary pressures becoming more embedded in the economy. This sentiment reinforces the need for careful observation and management of inflationary trends. Meanwhile, the FTSE 250 midcap index (.FTMC), which primarily consists of domestically-focused companies, fell by 0.4%. The decline was led by a significant 9.7% drop in Liontrust Asset Management (LIO.L). The company reported a decrease in its assets under management and advice (AUMA), which contributed to the decline in its stock performance. <h2>Dr Martens Announces Share Buyback Program</h2> On a positive note, Dr Martens (DOCS.L), the renowned bootmaker, saw its shares rise by 5.1% after announcing the initiation of a share buyback program worth up to £50 million ($65.52 million). In Summary, the FTSE 100 experienced a slight decline due to the drop in oil stocks, but the overall sentiment was positive as it recorded its best weekly performance in over three months. The global market rally and the prospect of interest rates peaking in the U.S. played a significant role in boosting investor optimism. The upcoming UK CPI data will provide valuable insights into the Bank of England's monetary policy decisions.

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Catch up on the market buzz as the FTSE 100 concludes its best week in three months, but with a lower close. Stay informed about the latest market dynamics.

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UK Consumer Price Inflation Hits Record Low in June 2023

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