UK inflation drops sharply to 6.8% in July

U.K. headline inflation fell back sharply in July to an annual 6.8 percent, but the core consumer price index remained unchanged, as the drop in energy prices over the past year led to the smallest increase in the cost of living since February 2022.

The core inflation — which excludes volatile energy, food, alcohol and tobacco prices — stayed 6.9 percent, unchanged from June and slightly above a consensus forecast of 6.8 percent.

The Office for National Statistics (ONS) said the main reason behind July’s fall was that the big jump in gas and electricity bills in the same month last year had not been repeated.