Inflation slows to 1.7 percent

Year-on-year inflation falls to 0,31pc

Year-on-year inflation falls to 0,31pc

The fall was a surprise, with forecasters expecting the consumer prices index (CPI) to remain at the four-year high it hit in the previous month. Economists are not convinced. The Office for National Statistics noted, that housing costs remain elevated.

The slowdown in inflation will support the arguments of the members of Monetary Policy Committee who contend that the United Kingdom economy is weakening while the pick-up in inflation may only be temporary.

This news has bought Carney and colleagues valuable time to work out what's going on. Some firms had exchange rate hedging in place which has delayed the passing on of the impact of higher import prices arising from Sterling's devaluation.

"Better technology is reflected as an effective price fall, even if the sticker price remains the same", Attewell said.

Tuesday's inflation update "sent the pound sharply lower as currency traders adjusted their outlook for interest rates", said Ben Brettell, senior economist at stockbroker Hargreaves Lansdown. Inflation is still likely to have far outpaced wages over the past year, which rose by only 1.8 per cent in the year to May. The report also notes more generally that the inflation rate for a range of goods has increased in recent months reflecting general rises in global commodity prices.

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After $0.86 actual EPS reported by Visa Inc for the previous quarter, Wall Street now forecasts -5.81% negative EPS growth. The stock of McDonald's Corporation (NYSE:MCD) has "Outperform" rating given on Friday, October 23 by RBC Capital Markets.

The results bear significance as they will take some of the pressure off the Bank of England to raise interest rates to tackle rising prices.

One of these fivers bought you 2.6 per cent less in June than a year earlier.

The ONS said that the biggest downward drag on the change in the CPI inflation rate between May and June had been transport, followed by recreation and culture.

Suren Thiru, head of economics at the British Chambers of Commerce seemed less convinced we have hit a real turning point.

Lower prices for motor fuels and recreational and cultural goods and services were the main contributors to the fall in the rate, although that was partially offset by rising prices for furniture and furnishings. But the latest figures will ease that pressure and analysts now see little likelihood of BoE rate hike next month.

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The rise in inflation and the consequent squeeze on discretionary incomes have raised fears over the consumer spending which drove resilient GDP growth in the immediate aftermath of the Brexit vote.

Hargreaves Lansdown senior economist Ben Brettell says the lower inflation figure will ease the impact on consumers, which the United Kingdom economy is heavily reliant on.

Following that the focus will shift to the European Central Bank and the Bank of Japan's rate decisions on Thursday, he said.

The consumer price index was 2.6% higher in June than the same month a year ago, the Office for National Statistics revealed, softening from the 2.9% rate in May and with most economists expecting it to remain roughly the same or at least only shrink to 2.8%. This is the first fall in the rate since April 2016 and was largely down to lower petrol and diesel prices.

"If inflation continues to moderate, this could bode well for economic growth", he added. 'Oil prices are volatile and could bounce back later this year.

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The BJP is not in favour of having a separate flag for the state. "Besides, this could lead to narrow-minded regional feelings". The then BJP government in 2012 had opposed the demands of declaring the red-and-yellow flag as official state flag.

It also took a knock against the euro, where it is now trading down 0.76 per cent on the day. "Despite this month's blip, inflation is heading towards 3% y/y", RBC says in a note. 'It is still likely that inflation will reach 3 per cent or a little higher in the second half of the year'.

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