UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise

By PAN PYLAS
Associated Press

LONDON (AP) — The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices. It’s a welcome development for hard-pressed households struggling during the cost of living crisis. The Office for National Statistics said Wednesday that the annual rate of inflation, as measured by the consumer price index, was 6.8% in July, its lowest level since Russia invaded Ukraine in February 2022 and sent energy prices surging. The decline from June’s 7.9% rate was in line with economists’ expectations. It’s unlikely to derail market expectations that the Bank of England will raise interest rates again next month, especially as wages are rising at a record high.