The rate at which prices are rising fell to 6.8% in the year to July, down from 7.9% in June.
Food inflation on items like milk, bread and cereals has come down, although remains high – at 14.9%.
What does inflation mean?
Inflation is the increase in the price of something over time.
If a bottle of milk costs £1 but £1.05 a year later, then annual milk inflation is 5%.
How is the UK’s inflation rate measured?
The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items in an imaginary “basket of goods”.
The basket is constantly updated to reflect shopping trends, with the most recent changes adding frozen berries and removing alcopops.
Each month’s inflation figure shows how much these prices have risen since the same date last year.
You can calculate inflation in various ways, but the main “headline” measure is the Consumer Prices Index (CPI).
What is core inflation?
Core inflation excludes the price of energy, food, alcohol and tobacco,
This measure was…
