UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low

By PAN PYLAS
Associated Press

LONDON (AP) — Inflation in the U.K. has fallen by more than anticipated to a 15-month low in a development that may ease the pressure for the Bank of England to raise interest rates sharply over the coming months. That may provide homeowners who are looking to get a new mortgage deal some comfort. The Office for National Statistics said Wednesday that inflation fell to 7.9% in the year to June from 8.7% the previous month. Economists had expected a more modest decline to 8.2%. Despite the decline, inflation is still running far higher than the Bank of England’s target rate of 2%. As a result, the central bank is expected to raise its main interest rate further at its upcoming meeting in early August.