Price rise of gaming consoles during lockdown triggered UK inflation: Economists
LONDON (UK) – Inflation in the UK showed an unexpected spike in June fuelled by rising prices for computer consoles during the lockdown, according to official data.
The Office for National Statistics revealed that consumer price inflation increased to 0.6% in June from 0.5% the previous month.
According to economists, the average forecast was a dip of 0.4%. Only a few predicted an increase.
“It is possible that prices have been influenced by the coronavirus (COVID-19) lockdown changing the timing of demand and the availability of some items, particularly consoles,” said the ONS.
“However, it is equally likely to be a result of the computer games in the bestseller charts.”
Prices of clothes and footwear remained steady in June, which normally witnesses sales promotions. This reflects how retailers slashed prices earlier than expected to move merchandise during the lockdown.
Core inflation, which does not include volatile energy, food, liquor and tobacco prices, climbed to 1.4% from 1.2% in May. Economists had expected the rate to remain stable at 1.2%.
Since the inflation is running well below the Bank of England’s 2% target, it leaves the institution under no pressure to rethink its huge stimulus push to help the economy through the coronavirus crisis.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field