UK inflation: Easing food prices drive unexpected dip
The UK saw a surprise fall in inflation in August to 6.7%, largely driven by slowing food prices, as the cost of living plunged to its lowest level in a year and a half.
The inflation comes down from 6.8% in July, according to the Consumer Prices Index, marking the third consecutive month that the figure has fallen.
Across food and non-alcoholic beverages, prices rose by 0.3% between July and August, compared with an increase of 1.5% during the same period a year ago.
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As a result, the annual rate of food inflation eased to 13.6% last month, down from 14.9% in July.
Price rises on milk, cheese and eggs were found to slow the most, with the overall price of vegetables and fish also falling.
Chancellor Jeremy Hunt told the BBC that the news showed “the plan to deal with inflation is working”.
However, the slowdown of inflation only means that prices are increasing at a slower rate. Prices for food and drink were still 13.6% higher in August compared with a year earlier.
“But it is still too high which is why it is all the more important to stick to our plan to halve it so we can ease the pressure on families and businesses,” Hunt said.
ONS chief economist Grant Fitzner added: “The rate of inflation eased slightly this month driven by falls in the often-erratic cost of overnight accommodation and air fares, as well as food prices rising by less than the same time last year.
“This was partially offset by an increase in the price of petrol and diesel compared with a steep decline at this time last year, following record prices seen in July 2022.
“Core inflation has slowed this month by more than the headline rate, driven by lower services prices.”
