The rate of price rises has fallen sharply, according to official figures.
The key, consumer price index (CPI) measure of inflation fell to 6.8% in the year to July, down from a rate of 7.9% in June, Office of National Statistics (ONS) data showed.
It means prices are still rising but at a slower rate than before as the energy regulator Ofgem changed the energy price cap in July which brought down bills.
Cost of living latest: Inflation falls sharply after energy cost reduction
Inflation came down as some goods and services became cheaper:
• electricity
• gas
• milk
• bread
• cheese
• petrol and diesel
The rate of inflation was still high due to price increases in:
• hotels
• air travel
There was a record fall in monthly gas prices, which fell by 25.2% between June and July, becoming the largest drop since the ONS began collating the data in 1988. At the same time the cost of services rose to a 30-year record of 7.4% – the highest rate since March 1992.
Further inflation falls are expected, with the Bank of England forecasting the rate will drop to 5% by the end of the year, still more than double the Bank’s 2% inflation target.
Loading…
Source: news.sky.com
ENB
Sandstone Group
