UK CPI falls to 6.8% in July

(Sharecast News) - UK consumer price inflation slowed again to 6.8% in July, driven by falling food and energy prices, according to official data published on Wednesday. The fall was lower than June's 7.9% and in line with economists' forecasts. However it is still well above the Bank of England's 2% target.

Falling gas and electricity prices provided the largest downward contributions to the monthly change while food prices rose in July 2023 but by less than the same month a year ago, also leading to an easing in the annual inflation rates, the Office for National Statistics said.

Hotels room rates and air fares - where airlines are hiking fares in response to demand - "provided the largest offsetting upward contributions" to the rate, it added.

Reporting by Frank Prenesti for Sharecast.com