Inflation & Prices

UK Inflation Falls Below 8% in Breakthrough Against Price Spiral

Pound falls after biggest downward surprise since July 2021
Services and core measures ease, relieving pressure on BOE

WATCH: UK Chief Secretary to the Treasury John Glen reacts as Britain’s inflation rate cools more than expected to the lowest level in more than a year.Source: Bloomberg

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By Tom Rees and Lucy White

July 19, 2023 at 6:03 AM UTC

Updated on

July 19, 2023 at 10:16 AM UTC

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Britain’s inflation rate dropped to the lowest in 15 months, fueling hopes among investors and economists of a shift away from the worst price spiral in the Group of Seven nations.

Official data showed that annual consumer price growth cooled sharply to 7.9% in June from 8.7% the previous month, marking the first time in five months that the headline reading came in lower than expected. Underlying pressures also retreated from their highest in three decades.