Inflation drops to 9.9% in August figures after July's 40-year high

The rate of Consumer Prices Index inflation fell to 9.9 percent in August, from 10.1 percent in July, the Office for National Statistics has said

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Inflation fell from its recent highs in August as diesel and petrol prices dropped over the month, but still remains close to its 40-year record.

The Office for National Statistics (ONS) said Consumer Prices Index inflation reached 9.9 percent in the year to August, down from 10.1 percent the previous month.

Experts had expected the figure to be unchanged between the two months.

The ONS said the biggest downward pressure on the inflation rate was the price of motor fuels, which has been falling in recent months.

Consumers have been hit hard by inflation in 2022
Consumers have been hit hard by inflation in 2022

The 6.8 percent drop in fuel prices was the highest since between March and April 2020, the early days of the pandemic when oil prices briefly went negative on some markets.

An ONS statement reads: “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.

“Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear.”