UK inflation falls to lowest level in nearly 3 years
Posted September 18, 2019 4:47 am.
LONDON — Official figures show that inflation in Britain fell to a near three-year low in August, further easing pressure on the Bank of England to raise interest rates.
The Office for National Statistics said Wednesday that consumer prices rose by 1.7% in the year to August, down from 2.1% the previous month.
The August rate is the lowest since December 2016.
The fall means inflation is running below the bank’s target of 2%. Rate-setters are expected to keep the bank’s main interest rate unchanged at 0.75% Thursday as they await developments in Brexit. Governor Mark Carney has said that interest rates could go either way if Britain leaves the European Union without a deal on Oct. 31.
The statistics agency said computer games and toys contributed to the fall in inflation.
The Associated Press
