, which is no longer an official statistic but is used to calculate increases in a range of consumer bills and linked to government borrowing costs, increased by 9pc in the year to July. Rail fares usually rise in January in line with July's RPI. However, the Department for Transport has already said regulated fares will not increase as much as the July figure in 2023. Ministers have not confirmed how much the new cap will rise by. Jeremy Hunt welcomed the inflation figures but the Chancellor added: 'We're not at the finish line. We must stick to our plan to halve inflation this year and get it back to the 2pc target as soon as possible.' Economists also warned that Rishi Sunak's goal to halve inflation to around 5pc remained in doubt. Heidi Karjalainen, an economist a){kind=link}
Economists expect further interest rate hikes by the central bank
Inflation proved stubborn in July as economists warned that underlying pressures meant the UK was not yet at a turning point on price rises.
The consumer prices index (CPI) rose by 6.8pc in the year to July, according to the Office for National Statistics (ONS), as the lower energy price cap pulled down household bills.
While the drop was in line with the Bank of England’s prediction of 6.8pc, economists had expected a sharper fall to 6.7pc.
July’s figure was down from 7.9pc in June and represents the lowest rate since February 2022, at the start of Russia’s war in Ukraine.