Written by 9:57 pm Wealth Building Views: [tptn_views]

Inflation falls to six.8% – MoneyMagpie

Isobel Lawrance

sixteenth Aug 2023

New figures show that the inflation rate fell by 1.1% within the yr to July, landing at 6.8%. This is anticipated to be, partly, because of lower energy costs – nonetheless prices of many commodities, specifically food, remain high.

Down from 7.9% in June, inflation beginning to cool off will bring hope to many, nonetheless it’s prone to take some time for prices to fall. Due to the fee of restaurants and hotel stays remaining high, in addition to goods resembling alcohol, it’s expected that there might be an extra increase in rates of interest.

6.8% is much lower than it was last October, when it hit a staggering 11.1% at its peak – but this remains to be over 3 times greater than the goal base rate of two%, set by the Bank of England.

It’s also to keep in mind that although inflation is falling, it doesn’t necessarily mean pr-ices will begin to fall immediately. Inflation means prices are still rising, just at a slower rate. However, some prices are beginning to go down as the results of falling inflation slowly trickle right down to the patron, with basics resembling milk and eggs slowly beginning to drop.

Danni Hewson, head of economic evaluation at AJ Bell, comments:

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