Inflation has fallen again with CPI inflation was 6.8 percent in the year to July, down from 7.9 percent in June and 8.7 percent in May, according to ONS figures released this morning
The widely expected drop has been driven partly by the lowering of the household energy price cap in July.
food prices rose in July 2023 but by less than in July 2022, also leading to an easing in the annual inflation rates while Hotels and passenger transport by air saw the biggest rises in the month according to the ONS
There were also notable downward effects from food and non-alcoholic beverages, particularly from milk, bread and cereals.
Core CPIH (excluding energy, food, alcohol and tobacco) rose by 6.4% in the 12 months to July 2023, the same rate as the 12 months to June 2023
The CPIH goods annual rate slowed from 8.5% to 6.1%,
Chancellor Jeremy Hunt said the fall in the Consumer Prices Index to 6.8% in July showed “the decisive action we’ve taken to tackle inflation is working” but “we’re not at the finish line”
