First a Welcome Development here in the uk. Inflation fell sharply to 6. 8 injuly, from 7. 9 injune. But it still means prices continue to rise. Prime minister rishi sunak says it shows his governments plan is working, but he cautioned against complacency. The drop was fueled by lower energy costs. But Core Inflation which looks at price rises excluding food and energy remained unchanged. According to the office of national statistics, the rising costs of hotels, air travel, and rents are in Part Keeping Inflation high. Economists are still expecting Interest Rates the tool used by the Bank Of England to control price rises to be raised further. The bbc s economics editor faisal islam has more. The heat may be coming out of rising prices at supermarkets and convenience shops, and that can be seen, for example, in milk prices on the shelves of this shop in walsall. Overall they are still rising, butjust by less than they were. This area was, originally, about two months ago, all a pound
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