In August, the Bank of England increased interest rates for the 14th time in a row.
LONDON — U.K. headline inflation cooled sharply in July to an annual 6.8%, but the core consumer price index remained unchanged, posing a potential headache for the Bank of England.
Analysts noted that the participation rate broadly held steady, while the employment rate declined, signaling a weakening in labor demand.
U.K. Finance Minister Jeremy Hunt said the drop in headline inflation showed the government's action to tackle inflation is "working," but "we're not at the finish line."
Cost-of-living crisis 'far from over'With headline inflation falling to 6.8% and wages growing at record pace, the U.K.'s prolonged cost-of-living crisis may be showing signs of abating, said David Henry, investment manager at Quilter Cheviot.
Persons:
Jeremy Hunt, Hunt, David Henry, Henry, Suren, Thiru
Organizations:
Bank of England, LONDON, Reuters, National Statistics, Monetary, Analysts, Office, Finance, Institute of Chartered Accountants
Locations:
CPIH, Cheviot, England, Wales