UK inflation unexpectedly slows to lowest rate in 18 months
It comes after a drop in hotel and flight prices
Last updated 20th Sep 2023
UK inflation has slowed to its lowest rate in 18 months.
The fall came unexpectedly this morning and follows a drop in hotel and flight prices, as well as a slowdown in food price rises.
It's thought that's helped to offset increases in fuel costs according to the Office for National Statistics.
The ONS said Consumer Prices Index inflation was 6.7% in August, down from 6.8% in July.
It marks the lowest rate since February last year.
Analysts had predicted inflation to accelerate last month to a reading of 7.1% due to a sharp rise in motor fuel amid a rebound in oil prices.
Chancellor of the Exchequer, Jeremy Hunt said: “Today’s news shows the plan to deal with inflation is working - plain and simple.
"But it is still too high which is why it is all the more important to stick to our plan to halve it so we can ease the pressure on families and businesses. It is also the only path to sustainably higher growth.”
Labour's Shadow Chief Secretary to the Treasury, Darren Jones, told Bauer News this morning that: "Prices are still increasing too fast.
"The price people will pay for petrol at the petrol pump, or food in the supermarket is continuing to increase.
"We estimate that means that monthly household builds will still be rising by about ÂŁ400 on average, that's clearly not good enough.
"We need to get away from the Government having to pay for their bills, we need workers to be earning enough to be able to pay for the bills themselves.
"That's where the British people want to be. We have to get out of this inflationary environment where costs rise too quickly."