UK Inflation Cools to 6.7% – Shocking Dip Defies Experts
Inflation in the UK took a surprising dip to 6.7% in August, smashing economists’ forecasts for a rise. The Office for National Statistics (ONS) revealed the consumer prices index (CPI) slowed down from 6.8% the month before, thanks largely to food prices rising slower than last year.
Inflation Dip Brings “Payback” After Months of Pressure
The easing comes despite soaring global oil prices which have kept fuel costs high. The Resolution Foundation said this fall is a form of “payback” after months of grim economic news. James Smith, their Research Director, said:
“The Bank of England has finally received some ‘inflation karma’ as price pressures eased considerably in August. This will strengthen the case that the Bank’s fourteen consecutive interest rate rises are now showing clear signs of putting downward pressure on inflation, and that its rate-rising cycle will soon end.”
While inflation remains stubbornly high, the downward trend offers a glimmer of hope for the British economy.
Net Zero Goals Face Possible Delay Amid Economic Concerns
In other news, Home Secretary Suella Braverman confirmed the government is sticking with its target to hit net zero emissions by 2050. But she admitted a delay is being considered for banning new petrol and diesel cars—from 2030 pushed to 2035. Plans to phase out gas boilers by 2035 may also be tweaked. Braverman stressed the importance of balancing green ambitions with economic growth.
£300 Cost-of-Living Payments to Hit Millions This Autumn
Millions of UK households on low incomes will get a £300 boost between October 31 and November 19. This comes as part of a programme of three payments adding up to £900. Around eight million people on means-tested benefits will benefit, helping to ease the cost-of-living crunch.
Pensions Secretary Mel Stride warned of scams linked to these payments, urging the public to stay alert and protect personal information.
