UK prices rose much less than expected in August, lowering the annual rate of inflation to 6.7 per cent and putting pressure on the Bank of England to pause its long run of interest rate rises on Thursday.
The Office for National Statistics’ figures came as a surprise to economists, who had predicted a rise in inflation from 6.8 per cent in July to 7 per cent in August, and led to a rapid sell off in sterling as traders recalculated their expectations of interest rates.
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