UK inflation falls to 9.9% after drop in petrol prices
The Guardian says Falling petrol prices pushed Britain’s inflation rate back below 10% in August in the first easing of upward pressure on the cost of living in almost a year.
The consumer prices index – the government’s preferred measure of inflation – dipped from 10.1% in July to 9.9% last month, with cheaper motoring costs more than offsetting the impact of dearer food.
Despite the better-than-expected figure, the Bank of England is still expected to raise interest rates by 0.5 points when its monetary policy committee meets next week.
Inflation remains more than three times higher than the 3.2% recorded in August 2021 and almost five times higher than the official 2% target. Core inflation – which strips out fuel, food, alcohol and tobacco and is closely monitored by the MPC – rose from 6.2% to 6.3% last month.