The key, consumer price index (CPI) measure of inflation fell to 6.8% in the year to July, down from a rate of 7.9% in June, Office of National Statistics (ONS) data showed, reports Sky News.
Inflation came down as some goods and services became cheaper, including the following…
• electricity
• gas
• milk
• bread
• cheese
• petrol and diesel
Sounds great yeh?
Sadly, it is not as good when you look under the bonnet.
Inflation down
UK inflation remains stubbornly high overall compared to many other nations, and well above the Bank of England’s target rate of 2%.
The Bank of England is also expected to raise interest rates again next month in an effort to bring inflation closer to the rate they are aiming for.
Also, Professor Jonathan Portes said: “Inflation continues to hit the poorest households hardest… while the people at the upper end of the income distribution… are getting higher pay rises than people at the bottom end… so we’re redistributing money from the poor to the rich…”
Pandemic
Nick Robinson on Radio 4 said: “The UK economy is still 0.5% smaller than it was before the pandemic… EU is 2.4% & the US is 5.6% bigger.”
The UK has grown quicker, but that is due to the state of the British economy.
