A surprise inflation rate drop has caught the UK unawares, per the consumer prices index and Office of National Statistics (ONS).<\/p>\n
Although the UK continues to have the highest inflation in the G7 group- and prices still rising overall- the ONS described the rate of increase as having “slowed substantially” to the lowest annual level since March 2022.<\/p>\n
Experts had predicted that the previous rate of 8.7% would only decrease by 0.5% rather than 0.8%.<\/p>\n
Chancellor Jeremy Hunt is careful to keep expectations reasonable, reiterating that \u201cwe aren\u2019t complacent and know that high prices are still a huge worry for families and businesses.<\/p>\n
“The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this year.\u201d<\/p>\n
Shadow chancellor Rachel Reeves decried the UK’s continued role of having the highest inflation in the G7, calling it a \u201challmark of Tory economic failure\u201d.<\/p>\n
The Lib Dems\u2019 Treasury spokesperson Sarah Olney said the figures would be \u201ccold comfort to countless families worried about their mortgage going up\u201d.<\/p>\n
Fuel prices<\/a> appear to be levelling out, but food inflation remains high, hitting households hard.<\/p>\n ONS chief economist Grant Fitzner observed that whilst manufacturing industries still faced high prices, sectors such as construction may see material costs softening in the near future.<\/p>\n @GrantFitzner<\/a> also said: (3\/3) \ud83d\udcac pic.twitter.com\/hneBMQjsfs<\/a><\/p>\n — Office for National Statistics (ONS) (@ONS) July 19, 2023<\/a><\/p><\/blockquote>\nCosts could decrease for construction materials<\/h3>\n
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