UK inflation rate drops to 15-month low, providing consumers with temporary relief.

Due to the decrease in gasoline and food prices, the UK inflation rate has dropped to its lowest level in over a year, providing a brief respite for the public. However, with the Middle East situation once again tense pushing up energy prices, this easing trend may be short-lived. The UK Office for National Statistics announced on Wednesday that in June, UK consumer prices rose by 2.6% year-on-year, lower than the previous month's 2.8%, and the lowest level since March last year. This figure is also lower than the average economist expectation of 2.7%, marking the third consecutive month below expectations. Last month, as the anticipation of the end of the US-Iran conflict increased, crude oil prices fell significantly, leading to a 3.1% decrease in gasoline and diesel prices. Additionally, food inflation has dropped to its lowest level since 2024, and the significant discounts in the clothing industry have also added downward pressure on overall inflation. The service industry inflation rate, a domestic pressure indicator closely monitored by the Bank of England, has decreased from 3.7% to 3.6%, slightly higher than expected.