Inflation Falls Slightly But Is Still Close To 40-Year High

The rate of Consumer Prices Index (CPI) inflation fell to 9.9 per cent in August, down from 10 per cent in July, the Office for National Statistics (ONS) has said.

- Rory Sullivan

The slight drop comes a month after Britain's rate of inflation rose to a new 40-year high, putting more pressure on families struggling with the cost of living crisis.

In July, CPI inflation hit its highest level since 1982, according to the ONS. Although experts predicted that the figure would remain unchanged in August, the downward pressure was put on the inflation rate by the falling price of fuel.

“The easing in the annual inflation rate in August 2022 reflected principally a fall in the price of motor fuels in the transport part of the index,” the ONS said. “Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear,” it added.

Despite falling back below 10 per cent, George Lagarias, chief economist at accountancy Mazars, said inflation would not drop off significantly for some time.