The Canadian Press - ONLINE EDITION

Drop in UK inflation rate to 1.6 per cent eases pressure on Bank of England to raise rates soon

  • Print

LONDON - Britain's inflation rate fell more than expected in July, to 1.6 per cent from 1.9 per cent in June, easing pressure on the Bank of England as it weighs when to raise interest rates.

The Office of National Statistics said Tuesday that a fall in clothing prices provided the biggest contribution to the drop in consumer price inflation. A drop in the cost of alcohol, financial services and food also contributed.

The Bank of England, which targets a 2 per cent inflation rate, is assessing when to start increasing rates as the economy improves.

Samuel Tombs, senior U.K. economist at Capital Economics, says "a general environment of benign inflationary pressure will give the (Bank of England) scope to raise them at an even more gradual pace than currently anticipated by the markets."

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Cheapskate: Your cheapskate questions

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Local- Korea Veterans Association stained glass window at Deer Lodge Centre. Dedication with Minister of Veterans Affairs Dr. Rey Pagtakhan. March 12, 2003.
  • Carolyn Kavanagh(10) had this large dragonfly land on her while spending time at Winnetka Lake, Ontario. photo by Andrea Kavanagh (mom0 show us your summer winnipeg free press

View More Gallery Photos

Poll

Do you think e-cigarettes should be banned by the school division?

View Results

Ads by Google