2023-09-20 07:08:34
Prices in the United Kingdom fell to 6.7 percent last month. The big question is whether the Bank of England will still raise interest rates on Thursday.
In October last year, British inflation was still over 11 percent. Since then, the percentage has been decreasing little by little. Inflation was expected to rise slightly in August due to high fuel prices and an increase in alcohol taxes.
But the surprising drop in inflation, according to the British statistics agency Office for National Statistics, comes because hotel prices and airline tickets became cheaper last month. Food prices also rose less rapidly compared to the same period last year.
The Bank of England said last month it expected inflation to rise to 7.1 percent in August. Many investors had therefore expected that the state bank would raise interest rates on Thursday. But due to falling inflation, it remains to be seen what the bank will do.
The Bank of England’s key interest rate is now 5.25 percent. That is the highest level in more than fifteen years. Since December 2021, the bank has already increased that rate fourteen times.
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