Inflation slows further than expected to 2%

Wednesday, August 18, 2021

When inflation reaches the Bank of England's 2% target, the pressures designed to push interest rates higher will ease in the short term.

The 2% level was below economists' expectations, but analysts warn that the boom after the pandemic may be pushing prices down even further.

UK inflation has softened slightly up to 2% in June, down from 2.5% in July.

The PA news agency partly rounds out the responses.

Deborah De Grasse, chief economist at Deloitte, said the July inflation numbers were lower than expected but this did not signal any easing of underlying price pressure.

Bridget Phillipson MP, Labour 'People are already feeling the effects of inflation, whether it's at the supermarket, petrol pump or paying for home improvements.