UK inflation cools to 9.9% in August as petrol prices dip

Down 0.2pp from July

UK inflation has cooled from its 40-year high in August as petrol prices fell, but food prices continue to rise.

The CPI rate fell to 9.9% in August from 10.1% in July, the Office for National Statistics has said, while economists had forecasted a 10.2% inflation rate.  A fall in the price of motor fuel was the primary reason for the change in inflation, while rising food costs had the largest upward impact during the month. US inflation higher than expected in August at 8.3% The annual rate for motor fuels eased from 43.7% to 32.1% between July and August. This is mainly a result of petrol prices falling by 14.3p per litre between these months, compared with a 2p rise a year ago. Diesel pric...