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Decrease fuel and electrical energy costs drove a pointy drop in UK inflation to six.8 per cent in July from 7.9 per cent the earlier month, the bottom fee of worth will increase since February final 12 months.
The determine met economists’ expectations and can come as a modest reduction after wage data on Tuesday was surprisingly robust, highlighting the work the Financial institution of England nonetheless must do to revive worth stability.
Whereas the headline fee’s decline confirmed that costs have been rising at a slower fee in current months than final 12 months, there was no enchancment in underlying worth pressures with core inflation — stripping out meals and power costs — nonetheless rising at an annual fee of 6.9 per cent.
With the speed of progress within the worth of providers rising to 7.4 per cent in July from 7.2 per cent in June, there shall be no easing of stress on the central financial institution to do extra to tame worth rises.