“This surprising drop in inflation suggests that the UK is winning the battle against soaring prices.
“Inflation’s current downward trajectory should gather momentum over the Autumn as falling energy bills, a weakening economy and the lagged impact of interest rate rises pushes the headline rate noticeably lower.
“The notable decline in services and core inflation suggests that underlying price pressures are becoming less sticky. The downward pressure from a cooling jobs market and a deteriorating economic outlook should continue to keep them on a downward path.
“Although interest rates will probably rise on Thursday, additional tightening unnecessarily risks aggravating the financial struggles facing households and businesses, given the long time-lag between rate hikes and their impact on the real economy.”
ENDS
Notes to editors:
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