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Inflation in the UK fell unexpectedly in August despite rising fuel prices and economists’ expectations that it would rise.
Prices rose by 6.7% during the month, down from 6.8% in July, which was announced by the Office of National Statistics (ONS) one day before Bank of England (BoE) was expected to increase interest rates for the 15th consecutive time tomorrow (Thursday).
The BoE raised interest rates to 5.25% last month, the highest since February 2008, and was widely expected to make its final consecutive increase tomorrow, although analysts suggest pressure to increase rates to try to force inflation back to its target of 2% has now reduced.
UK inflation reached a high of 11.1% in October 2022 due to factors including spiralling energy prices following the invasion of Ukraine by Russia.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)