- ‘Core’ inflation keeps on rising amid worries of 'second-round' effects
- Food price inflation remains stubbornly high
Annual inflation has slowed to 8.7 per cent in the UK but the reading came in above what economists were expecting and has not diminished expectations of further interest rate increases.
The figure, released by the Office for National Statistics this morning, marked the end of a seven-month run of double-digit readings, though it remains substantially above the Bank of England's 2 per cent inflation target. It was also significantly higher than its 8.4 per cent forecast and the 8.2 per cent projected by economists.