UK consumer price inflation hit a 17-month low in July on easing energy prices but core inflation stayed unchanged and services cost inflation accelerated, strengthening the case for another interest rate hike in September. Consumer price inflation slowed to 6.8 percent in July, as expected, from 7.9 percent in June, the Office for National Statistics reported Wednesday. This was the weakest since February 2022, when inflation was 6.2 percent.
Falling gas and electricity prices provided the largest downward contributions to the annual rate. Meanwhile, hotels and air travel were the classes that provided the largest offsetting upward contributions to the change.
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Business News
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.