 measure of inflation fell to 6.8% in the year to July, according to the Office of National Statistics (ONS). 1 Prices have risen over time This is down from a rate of 7.9% in June and is the slowest rate drop since February 2022. It means prices are still rising but at a slower rate than before. Inflation is a measure of how the price of goods and services has changed over the past year. Matthew Corder, ONS deputy director of prices, said: "Inflation slowed markedly for the second consecutive month, driven by falls in the price of gas and electricity as the reduction in the energy price cap came into effect. "Although remaining high, food price inflation has also eased again, particularly for milk, bread and cereal. "Core inflation was unchanged in July, with the falling cost of goods offset by higher service prices." Chancellor of the Exchequer Jeremy Hunt said: "The decisive action we've taken to tackle inflation is working, and the rate now stands at its lowest level since February last year. "But while price rises are slowing, we're not at the finish line. "We must stick to our plan to halve inflation this year and get it back to the 2% target as soon as possible." What it means for your money A drop in inflation usually means that prices are still rising, but at a slower rate. Adam Bullock, UK director at TopCashback said that while inflation has dipped, we are "far from being out of the woods". 'The dipped average figure, while better than a rise, mustn't mask the soaring prices we're still seeing every day. "Recent ONS figures revealed food and soft drink costs were up 18.4% year-on-year, while the price of flights soared by 20% and the cost of things like live music tickets, toys and package holidays have climbed by nearly 7% year-on-year. "These hikes will be a b){kind=link}
THE UK inflation rate has fallen again – to 6.8 per cent in the year to July, official figures show.
The consumer price index (CPI) measure of inflation fell down from a rate of 7.9% in June, according to the Office of National Statistics (ONS).
This is the slowest rate drop since February 2022 though analysts predicted a reading of 6.7% for the month.
It means prices are still rising but at a slower rate than before.
Inflation is a measure of how the price of goods and services has changed over the past year.