UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise
The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices
LONDON (AP) — The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices, official figures showed Wednesday, a welcome development for hard-pressed households struggling during the cost of living crisis.
The Office for National Statistics said the annual rate of inflation, as measured by the consumer price index, was 6.8% in July, its lowest level since February 2022, the month Russia invaded Ukraine and sent energy prices surging.
The decline from June's 7.9% rate was in line with economists' expectations.
The statistics agency said the fall was largely driven by a lower energy prices as last year's sharp increases fell out of the annual comparison. It also said that food price inflation, which also spiked sharply in the wake of Russia's invasion of Ukraine, eased too.
