UK inflation: Slowing food prices drive surprise fall

20th September 2023
Home > News > UK inflation: Slowing food prices drive surprise fall

By Noor Nanji & Faisal Islam BBC News

Slowing food prices helped drive a surprise fall in inflation in August, with prices now rising at their slowest rate in a year-and-a-half.

Inflation, which measures how prices change over time, fell to 6.7% in the year to August, down from 6.8% in July, official figures show.

It is the third month in a row that the figure has dropped.

Prices for milk, cheese and vegetables all fell last month, but the price of cereals rose.

Most experts had expected inflation to increase due to a rise in the cost of petrol and diesel last month, driven by higher oil prices.

But a slowdown in rising food prices and a drop in air fares and accommodation costs all helped drive the overall rate of inflation lower.

When the rate of inflation falls, it does not mean prices are coming down, but that they are rising less quickly.

Grant Fitzner, chief economist at the Office for National Statistics, said it remained "a mixed picture", but said food manufacturers were "paying less for food than a year ago," and this was "starting to pass through to consumers."


Share this article
  • icon
  • icon

Related News Articles

UK mortgage rates continue to fall as competition intensifies

Lenders are continuing to cut mortgage rates, with a string of new deals announced. The average two-year fixed homeowner mortgage rate yesterday fell to 5.62%, down from 5.66% on Monday, according to Moneyfacts, with further reductions anticipated in the coming days. The average five-year fixed homeowner mortgage rate on Tuesday morning was 5.24%, falling from 5.28% a day ear...

17/01/2024
UK tipped for speedier rate cut after surprise inflation fall

A surprise fall in inflation in November has raised hopes that the Bank of England will begin cutting interest rates sooner than expected. Inflation - the rate prices rise at - fell from 4.6% to 3.9% last month, the lowest for more than two years. The Bank has repeatedly increased rates to try to control inflation, driving up mortgage repayments for millio...

20/12/2023
Industry experts welcome January rise in house prices

Nationwide reveals UK house prices rose by 0.7% in January but what happens to mortgage rates will be crucial for 2024. A wave of optimism swept across the housing market this morning ahead of tomorrow’s Bank of England interest rate decision after Nationwide reported UK house prices rose 0.7% in January. And the small rise led to in an improvement in the annual rate of...

31/01/2024
‘Buyers holding back as they wait for mortgage rates to shrink’

Demand for homes rebounded in the first weeks of January but the start of 2023 is a slow burn with buyers waiting to see what happens next.The demand for homes rebounded in the first few weeks of January in line with pre-pandemic levels but it seems that the start of 2023 is more of a slow burn with wannabe buyers waiting to see if prices and mortgage rates fall, says Zoopla....

30/01/2023