That is the smallest annual rise since February 2022 and reflects falls in the price of gas and electricity after an energy price cap, set by the energy regulator, was lowered at the end of June.
“Although remaining high, food price inflation has also eased again, particularly for milk, bread and cereal,” said ONS deputy director of prices Matthew Corder.
Food price inflation slowed to 14.9% in July, from 17.4% in June, with prices still rising strongly but less than in June.
In less good news, services inflation accelerated last month to 7.4%, from 7.2% in June.
“With labor costs being the bulk of the expense for services providers, the Bank of England may deem that more work has to be done to ensure that services price inflation is contained,” said Ellie Henderson, an economist at Investec in London.
Persons:
”, Matthew Corder, Ellie Henderson, Jamie Dutta
Organizations:
London CNN —, National Statistics, Bank of England, Investec, Financial
Locations:
“, London