Interest rates: Big rise less likely after inflation surprise

Interest rates are predicted to rise less sharply after the UK saw a surprise drop in inflation in June. The Bank of England has raised rates 13 times since December 2021 to try to cool soaring price rises, driving up borrowing costs for millions.

Experts say it is now under less pressure to act after inflation slowed to 7.9% in June, down from 8.7% the previous month. It means UK inflation has dropped to its lowest level in more than a year.

Falling fuel prices contributed to the slowdown in June, while food prices are rising less quicklyaccording to the Office for National Statistics (ONS) which publishes the figures.

However, the UK's inflation rate remains almost four times higher than the Bank's official 2% target - and far above other developed countries. In the US, inflation is 3%, and in the Eurozone it is 5.5%.

"It is a large drop [in the UK] but let's………


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