U.K inflation falls unexpectedly

 In August, the U.K.'s inflation rate unexpectedly dropped to 6.7% from 6.8%, proving predictions of a rise due to increased oil prices to be wrong. Core inflation, not including items like food and energy, fell even more to 6.2% from 6.9%. This decline added to a decrease in services inflation, raised doubts about the Bank of England's planned interest rate hike, marking a potential shift in its monetary policy. Meanwhile, the U.S. experienced a 3.7% increase in consumer prices, and Europe's inflation remained higher due to energy and food price spikes following the Russia-Ukraine conflict. Despite efforts to curb inflation through higher interest rates, Europe's economies, including the U.K., faced challenges. 

Hannon, P. (2023, September 20). U.K. inflation falls unexpectedly, easing pressure on Bank of England. The Wall Street Journal. https://www.wsj.com/economy/global/u-k-inflation-falls-unexpectedly-easing-pressure-on-bank-of-england-bdaa4bdc?mod=global_news_article_pos3 

Ziady, H. (2023, September 21). Bank of England pauses historic rate hikes as UK inflation falls | CNN business. CNN. https://www.cnn.com/2023/09/21/economy/bank-of-england-uk-interest-rates/index.html