20 Sep 2023
The UK rate of inflation fell to 6.7% in the year to August 2023, data published by the Office for National Statistics (ONS) has revealed.
The fall surprised economists, who expected inflation to rise. The Consumer Prices Index (CPI) fell from 6.8% in July to 6.7% in August. The latest figures mean that the cost of living is now at its lowest level in a year and a half.
Slowing food prices helped drive the fall, the ONS found, particularly prices for eggs, milk and cheese. The fall in inflation could help ease the pressure on the Bank of England in regard to its imminent interest rates decision.
Responding to the latest inflation figures, Chancellor Jeremy Hunt stated that the fall shows the government's plan to reduce inflation is working. However, he also admitted that inflation is 'still too high', and that the government is committed to its plan to halve it in order to ease pressure on UK households and businesses.