Energy costs behind drop in annual rate in July, as wage increases finally overtake price rises
The UK’s annual inflation rate fell sharply to 6.8% in July, down from 7.9% in June, as the drop in energy prices over the past year led to the smallest increase in the cost of living since early 2022.
Financial markets had been braced for a marked easing in upward price pressure last month, and the figure announced by the Office for National Statistics was in line with their prediction.
