UK inflation in surprise fall in August, though Bank of England still set to raise rates

LONDON (AP) — Inflation in Britain fell unexpectedly in August to its lowest level since the start of Russia’s invasion of Ukraine, which led to sharp rises in energy and food costs. The Office for National Statistics said Wednesday that inflation, as measured by the consumer prices index was 6.7% in the year August, down from 6.8% in July. The decline took inflation to its lowest level since February 2022. It said that lower hotel and air fare costs and a moderation in food price rises. They helped offset an increase in energy prices on the back of higher crude oil prices. Despite the fall, the Bank of England is expected to raise interest rates again on Thursday.