In the United Kingdom, the rate of inflation declined to 6.8% in the year up to July, marking a notable decrease from the 7.9% recorded in June.

This marks the second consecutive month of significant inflation rate reduction, and the current level represents a low point not seen in 15 months.

Increase in food costs and other utilities

This decline can be attributed to factors such as a reduction in the energy price cap and a more modest increase in food costs, particularly items like milk, bread, and cereals.

However, when compared to many other countries, the overall level of inflation in the UK remains notably high, well above the Bank of England’s target rate of 2%.

The persistent elevation in inflation is mainly influenced by elevated costs in areas like hotels, air travel, and rents, as noted by the Office of National Statistics.

Consequently, the Bank of England is anticipated to implement another increase in interest rates next month as part of its efforts to alleviate the inflationary pressure.