UK inflation fell to 6.8% in July

Official data revealed on Wednesday that inflation in Britain slowed as expected in July to its lowest annual rate since February 2022, despite more indicators monitored by the Bank of England that reflect pressure on commodity and services prices.

The Office for National Statistics said annual consumer price inflation slowed to 6.8 percent from 7.9 percent in June, in line with forecasts by the Bank of England and a Reuters poll of economists. The inflation rate is moving further away from the 41-year high reached in October at 11.1 percent, but still above the central bank’s target of 2 percent.

Despite the decline, Britain still maintained one of the highest rates of price growth in Western Europe, as only Iceland and Austria surpassed it in inflation in July.

The Bank of England watches core inflation, which excludes volatile energy and food prices, and consumer services prices closely.

The core inflation rate remained at 6.9 percent in July, unchanged from June and higher than the 6.8 percent forecast in a Reuters poll.

Service price inflation rose to 7.4 percent from 7.2 percent in June.

“The rise in prices is slowing, but we are not at the finish line. We must stick to our plan to halve inflation this year and get it back to the 2% target as soon as possible,” Finance Minister Jeremy Hunt said.