UK inflation at 1.5-year low

Despite expectations for an increase in annual inflation in the UK in August, it fell. Inflation in the country was recorded as 6.7 percent. While the recent increase in energy costs has caused inflation expectations to rise, the latest data from the UK pointed to a different situation. Annual inflation in the country was recorded as 6.7 percent in August. Economists participating in the Bloomberg survey expected annual inflation to be 7 percent. Inflation in the country was recorded as 6.8 percent in July. The monthly inflation was also well below expectations. In August, consumer prices in the country increased by 0.3 percent compared to the previous month. The expectation for this data was set at 0.7 percent. Inflation in the country was minus 0.4 percent in July. The surprise in headline inflation was also seen in the core indicator. Annual core inflation in the UK was 6.2 percent. In the Bloomberg survey, core inflation was expected to be 6.8 percent. In July, annual inflation was 6.9 percent.