British inflation unexpectedly falls in August

The Office for National Statistics said that Britain's consumer price index fell to 6.7% in August from 6.8% in July, its lowest level in 18 months and below expectations of 7.0% in August.

Core inflation, which excludes volatile food and energy prices, fell sharply to 6.2% in August from 6.9% in July, and services sector inflation, which the Bank of England closely monitors, eased to 6.8% in August from 7.4% in July.

Finance Minister Jeremy Hunt said: “Today’s news shows that the plan to deal with inflation is working, plain and simple, but it is still very high and that is why it is so important to stick to our plan to halve it so that we can ease the pressure on families and businesses.”

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