Is the worst finally over? Relief for Rishi Sunak as inflation falls - but warning on further rate rises

There were hopes on Wednesday that the worst of the long cost-of-living crisis was over as inflation fell sharply, but homeowners were warned they still face further hikes in interest rates.

The Office for National Statistics said the headline measure of inflation — the Consumer Prices Index — dropped to 6.8 per cent in July, down from 7.9 per cent in June.