Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Drop in UK inflation rate to 1.6 per cent eases pressure on Bank of England to raise rates soon

LONDON - Britain's inflation rate fell more than expected in July, to 1.6 per cent from 1.9 per cent in June, easing pressure on the Bank of England as it weighs when to raise interest rates.

The Office of National Statistics said Tuesday that a fall in clothing prices provided the biggest contribution to the drop in consumer price inflation. A drop in the cost of alcohol, financial services and food also contributed.

The Bank of England, which targets a 2 per cent inflation rate, is assessing when to start increasing rates as the economy improves.

Samuel Tombs, senior U.K. economist at Capital Economics, says "a general environment of benign inflationary pressure will give the (Bank of England) scope to raise them at an even more gradual pace than currently anticipated by the markets."

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100

Social Media

Canadian Mortgage Rates