The inflation rate in UK slowed down in June for two months in a row and reached the level of 3.2% from 3.4%. On the other hand, according to Office for National Statistics (ONS), the increase in the Consumer Price Index (CPI) is still above the target of 2% estimated by the Bank of England.
But at the same time, a member of the Monetary Policy Committee of Bank of England, Andrew Sentence has called for a rise in interest rates. He is the only member of the group to vote for the interest rise.
The Retail Price Index inflation also fell down from 5.1% in May to 5%. The down fall in the fuel prices and clothing prices are two other reasons for the fall in the inflation rate.
According to Andrew Sentence another reason for this fall in inflation rate could be the weakness of pound in the global market. He has also said the MPC had been responsible for this weakness as it had increased the cost of imports.
Due this reason he had called for the gradual rise in interest rates to recover the economy.
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