UK Inflation Drops to 7.9%: Positive Surprise Amidst Economic Concerns

UK Inflation Drops to 7.9%: Positive Surprise Amidst Economic Concerns

We’ll soon be drawing our live coverage to a close. But before we go, here’s a look at some of main developments:

Inflation Rate

Inflation in the UK dropped to 7.9% in the year to June, according to the Office for National Statistics.

Positive Surprise

Today’s figures came as a positive surprise to some, as economists had expected a smaller drop to 8.2% – after it had been stuck at 8.7% in April and May.

Government Response

Chancellor Jeremy Hunt welcomed the drop but said the government knows high prices “are still a huge worry for families and businesses”.

Interest Rates Predictions

Interest rates, mortgage repayments, and house prices continue to worry many people. Analysts are predicting that, given the latest 7.9% figure, the Bank of England will add 0.25% to the current interest rate of 5% at the Bank’s next meeting in August.

Political Response

The Liberal Democrats and Labour welcomed lower inflation but criticized the government, saying it should do more to help those struggling.

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