UK inflation fell unexpectedly in August. That makes it unclear what the Bank of England will do

By PAN PYLAS
Associated Press

LONDON (AP) — Inflation in Britain fell unexpectedly in August to its lowest level since the start of Russia’s invasion of Ukraine. The Office for National Statistics said Wednesday that inflation was 6.7% in the year to August, down from 6.8% in July. The decline took inflation to its lowest level since February 2022, when Russia’s war led to soaring energy and food prices. The ONS credited the fall to lower hotel and airfare costs and a moderation in food price rises. That helped offset an increase in energy costs. The decline in inflation have reined in expectations of another interest rate increase from the Bank of England on Thursday.