Given the slowing of inflation, the Bank of England will put off raising interest rates

Despite a rise in fuel prices, Britain's inflation rate unexpectedly declined, which relieved pressure on the Bank of England to hold off on raising interest rates.

Read more : In contrast to the 6.0% forecasted growth, Bangladesh’s GDP is expected to increase by 6.5% in FY2024

In August, the Consumer Price Index increased by 6.7% compared to a year ago, which was less than the 6.8% increase in July, the Office for National Statistics reported on Wednesday.

The increase to 7% was what economists had predicted. Core inflation, which excludes food and gasoline, decreased from 6.9% to 6.2 percent.

Since the epidemic, labour shortages in the UK have caused a spiralling wage-price problem, making it the country in the Group of Seven with the worst inflation problem.

After policymakers conclude their most recent meeting on Thursday, investors anticipate the BOE to continue its fastest monetary tightening cycle in three decades.

The report for this month, however, contradicted predictions of a little increase in prices and demonstrated that the BOE's efforts to control inflation are succeeding. Inflation in the services sector decreased to 6.8% from 7.4%.

The economy is beginning to feel the effects of the fast increase in the benchmark lending rate of the BOE from near zero at the end of 2021 to 5.25% today.

Activity decreased in the first few weeks of the third quarter, according to official data and surveys, resurrecting the possibility of a recession.

A little more than a year out from what is considered the most likely date for the next election, Prime Minister Rishi Sunak's Conservative government is lagging the Labour opposition in surveys, which has given them their latest issue.

One of Sunak's top five aims is to decrease inflation in half, but he also wants to bring growth to voters who are concerned about their living standards being squeezed.

OTT India updates you with the latest news, The Country’s no.1 digital news platform OTT India. Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device.