UK CPI inflation falls to 1.6% in year to July

UK consumer price inflation assumed its downwards trajectory once more in July following a sharp spike the previous month.

UK CPI grew by 1.6% in the year to July, compared to a rise of 1.9% in the year to June, and 1.5% in the year to May. Economists had predicted a fall to 1.8% in July. The Office for National Statistics (ONS) said falls in clothing prices provided the largest contribution to the fall in the rate. Other large downward effects came from the alcohol, financial services and food & non-alcoholic drinks product groups. The largest, partially offsetting, upward effect came from the transport group. CPIH, a measure of CPI which includes homeowner costs, grew by 1.5% in the year to July 2...