LONDON, Sept. 20 (Xinhua) -- The United Kingdom's (UK) Consumer Prices Index (CPI) rose by 6.7 percent over the 12 months leading up to August, down from 6.8 percent in July, the Office for National Statistics (ONS) said on Wednesday.
"The rate of inflation eased slightly this month driven by falls in the often-erratic cost of overnight accommodation and airfares, as well as food prices rising by less than the same time last year," said ONS Chief Economist Grant Fitzner.
The CPI annual inflation rate for food and non-alcoholic beverages was 13.6 percent in August, down from a recent high of 19.2 percent in March, which was the highest annual rate in over 45 years, according to the ONS data.
The annual inflation rate for restaurants and hotels was 8.3 percent in August, the lowest since May 2022.
The ONS attributed the most significant upward contribution to the change in the annual rates to the rising prices of motor fuel.
August's 6.7 percent inflation rate was the lowest since February 2022, falling from the peak of 11.1 percent reached last October.
"A surprise fall in the UK's inflation rate to 6.7 percent in August will strengthen the case that interest rates are at or near peak," said the British think tank Resolution Foundation.
In August, the Bank of England (BoE) raised the interest rate to 5.25 percent, the 14th consecutive rate hike since December 2021, to battle high inflation. The policymakers are going to announce the next interest rate decision on Thursday.
"But while mortgagors will welcome the end of interest rate rises, Britain's wider cost-of-living crunch is likely to continue well into the coming election year," said James Smith, research director at the Resolution Foundation.
Britain's 6.7 percent inflation rate is still higher than any other G7 economy and over three times above BoE's target of 2 percent. ■