Inflation drops in UK during July

Inflation in the UK fell to 2.8 per cent last month, the latest data from the Office for National Statistics (ONS) has revealed.

Figures released by the body indicated that the headline figure for inflation was down to 2.8 per cent in July from 2.9 per cent in the previous month.

However, this remains some way above the target of two per cent set by the government.

It was noted by the ONS that among the largest contributions to the fall in the rate came from air fares, while price movements in the recreation and culture and clothing and footwear sectors also acted as downward pressures on inflation.

But a rise in petrol and diesel prices was picked out by the body as having partially offset the fall over the course of the month.

With inflation remaining above the two per cent target, the Bank of England's new governor Mark Carney will be called on to explain to the government why this is the case.

Mr Carney – a former governor of the Bank of England – took over the role from the previous incumbent Sir Mervyn King earlier in the summer.

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