Britain’s annual inflation rate dropped sharply in July to a 15-month low, according to official data, off the back of lower energy prices and in line with economists’ expectations.
The Consumer Prices Index (CPI) rose by an annual rate of 6.8 percent, down from 7.9 percent in June, the Office for National Statistics (ONS) said on Wednesday, easing the country’s cost-of-living crisis.
July’s price growth met the predictions of analysts, including the Bank of England, which had forecast the 6.8-percent rate.
It follows a bigger-than-expected drop in June when the CPI fell 0.8 percent.
However, UK inflation has for months been the highest among G7 nations, despite the Bank of England hiking its key interest rate more than a dozen times in succession to try to tame it.
Although there was a fall in gas and electricity prices in July, food prices continued to rise, but more slowly than in the same month a year earlier.
“Inflation slowed markedly for the second consecutive month, driven by falls in the price of gas and electricity,” ONS deputy director of prices Matthew Corder said.
“Although remaining high, food price inflation has also eased again, particularly for milk, bread and cereal.
Source: Aljazeera