UK inflation fell unexpectedly in August but the Bank of England is still set to raise rates

By PAN PYLAS
Associated Press

LONDON (AP) — Inflation in Britain fell unexpectedly in August to its lowest level since the start of Russia’s invasion of Ukraine, which led to sharp rises in energy and food costs. The Office for National Statistics said Wednesday that inflation, as measured by the consumer prices index was 6.7% in the year to August, down from 6.8% in July. The decline took inflation to its lowest level since February 2022. It credited the fall to lower hotel and air fare costs and a moderation in food price rises. They helped offset an increase in energy costs on the back of higher crude oil prices. Despite the fall, the Bank of England is expected to raise interest rates again on Thursday.