CPI inflation falls to 6.8% in July

Written by Dan McGrath

16/08/2023

The consumer price index (CPI) measure of inflation has fallen from 7.9% in June to 6.8% in July, the latest Office for National Statistics (ONS) data has revealed.

Although prices are still rising, the rate at which they are doing so is at a slower rate. The ONS has pointed towards the changes in the Ofgem energy price cap in July, which subsequently brought down bills.

Inflation also came down on goods and services including electricity, gas, milk, bread, cheese, petrol and diesel.

Prices are currently rising at the slowest rate since February 2022, when inflation was at 6.2%, leaving many hoping that the worst of the cost of living crisis could be over.

Furthermore, a record fall in monthly gas prices was recorded between June and July, falling by 25.2%. This is the largest drop the ONS has seen since it began collating the data 35 years ago in 1988.

However, the costs of services rose to a 30-year record of 7.4%, the highest rate since 1992.

Although further decreases in inflation are expected, with the Bank of England (BoE) forecasting a drop to 5% by the start of 2024, this is still considerably higher than its inflation target of 2%.

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