This even marginal fall in inflation was welcomed as a pleasant surprise, as most economists had expected an increase to above 7%
London, Thanasis Gavos
The price of the Consumer Price Index in the United Kingdom decreased to 6.7% for the month of August, from 6.8% the previous month.
This even marginal drop in inflation was welcomed as a pleasant surprise, as most economists had expected an increase to above 7% due to pressures caused globally by rising oil prices.
The Office for National Statistics attributed the decline to a lower rate of increase in food and non-alcoholic drink prices in August compared to the previous month.
Inflation is now the lowest since February 2022 and while it remains well above the Bank of England’s mandated target of 2%, it is down significantly from the 11.1% it peaked at a year ago .
Higher was the first of the so-called “structural inflation”, which excludes the volatile prices of food and fuel. Although economists did not expect a change, it ended up falling significantly from 6.9% to 6.2%.
Ahead of the new inflation data, most analysts were expecting a final, 14th consecutive increase in the Bank of England’s key lending rate from 5.25% to 5.5% at tomorrow’s Monetary Affairs Committee meeting.
Source :Skai
With a wealth of experience honed over 4+ years in journalism, I bring a seasoned voice to the world of news. Currently, I work as a freelance writer and editor, always seeking new opportunities to tell compelling stories in the field of world news.
