UK inflation falls sharply for second month to 6.8%

For the second month in a row, the rate of inflation – how quickly prices are rising – has dropped sharply to a 15-month low. 

Inflation in the UK dropped to 6.8% in the year to July from 7.% in June. 

The latest figure was driven by a reduction in the energy price cap and food costs rising less rapidly, particularly staple foods such as milk, bread and cereals. 

Despite the latest figure, the UK inflation remains high overall compared to many other nations and well above the Bank of England’s target rate of 2%. 

The rising costs of hotels, air travel and rents are some of the main things keeping inflation high, according to the ONS. It’s likely the Bank is expected to raise interest rates again next month in an effort to bring inflation down.