UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low

By PAN PYLAS
Associated Press

LONDON (AP) — Inflation in the U.K. has fallen by more than anticipated to a 15-month low in a development that offered struggling homeowners hope that interest rates will not rise as much as feared over the coming months. The Office for National Statistics said Wednesday that inflation fell to 7.9% in the year to June from 8.7% the previous month. Economists had expected a more modest decline to 8.2%. Despite the decline, inflation is still running far higher than the Bank of England’s target rate of 2%. As a result, the central bank is expected to raise its main interest rate further at its upcoming meeting in early August.