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In the News

UK Economy - Inflation Falls to Below 8%

Geoff Riley

19th July 2023

A welcome fall in UK inflation lifts hopes that interest rates may peak at six per cent or less in the coming weeks and months. UK annual CPI inflation rate dropped from 8.7% in May 2023 to 7.9% in June. Economists had expected 8.2%. But food price inflation is 17% - the highest rate of inflation among G7 countries.

Here is some reaction and comment.

The Guardian wonders what the next few years for the car industry if we revert to higher interest rates. Higher interest rates mean less borrowing and if people simply no longer decide to regularly upgrade their cars, then the sector is going to suffer. And any decline in spending is going to have a multiplied effect.

Please read: Will high interest rates burst the new car bubble and will drivers hand back keys?Jasper Jolly

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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