Scott, the Investment Director at Interactive Investor, has stated in a report that while the trajectory of inflation in the UK is encouraging, the country has yet to fully emerge from the grip of inflation.
In July, the overall inflation rate decreased to 6.8% year-on-year, continuing a steady decline.
However, Scott indicates that wage growth remains robust, potentially leading to persistent elevated core inflation rates and even overall inflation rates that remain well above the Bank of England‘s 2% target and higher than levels in other European countries.
Consequently, the UK’s anti-inflation journey is not yet at its endpoint. This implies that the Bank of England might further tighten monetary policy to counter lingering price pressures.
