Economists think that inflation did not rise last month for the first time in a year, but it is still expected to tick up in the weeks to come. August’s inflation is set to remain at 10.1% when it is presented on Wednesday morning, according to an average of expert predictions.
It is the same year-on-year Consumer Prices Index (CPI) inflation rate that the Office for National Statistics measured in July – the first time since September last year that CPI has not risen. The cooling off was probably driven by the cost of petrol and diesel, which started to drop over the month.
According to figures from the RAC, the cost of unleaded petrol dropped from a peak above 191p a litre at the start of July to around 167p this week. This will take some pressure off households, experts said.
