The US Labor Department (yes, we know it’s Labour in UK) has issued its US inflation figures for July. It has fallen from 9.1% pa in June 2022 to 8.5% pa in July 2022.
The Labor Department put the inflation falls mainly down to lower oil and petrol prices. That said, most other areas such as housing and food costs continued to rise.
By comparison, UK Consumer Prices Index (CPI) increased by 0.3% to 9.4% pa in June 2022 and the Retail Prices Index (RPI) hit 11.8% pa. So, what about inflation for the UK?
UK inflation figures for July are due to be published on 17 August 2022 and we expect UK inflation to also fall slightly. That said, the underlying trend on consumer spending pressure is still upwards. Interest rates have gone up to try and curb inflation, but this will also hit our mortgage and property costs as well the energy prices cap for energy at home is due to be increased again in October.
We have said this before and we say it again, the government is NOT looking to reduce prices as we can see with no reduction in fuel duty. It needs inflation to devalue government covid-19 debt, so it is offering low-income family cost of living grants and a nationwide energy grant for Band D and below properties but not reducing the price or its tax take.. This will not reduce prices for you, it will just make the next energy price cap increase slightly less painful. Inflation will remain high for the time being,