Lower fuel prices caused an unexpected fall in British inflation in August, official figures showed on Wednesday, offering some respite to households and the Bank of England after inflation hit a 40-year high the month before. The annual rate of consumer price growth fell to 9.9% in August from 10.1% in July, its first drop since September 2021 and below economists’ expectations in a Reuters poll for it to rise further to a fresh high of 10.2%. Sterling weakened on the news, but economists said they expected inflation to rise further later this year, and that the Bank of England would still have to raise rates next week after postponing this week’s decision after Queen Elizabeth’s death. “Overall and core UK CPI inflation haven’t peaked yet. As such, the Bank of England will have to continue turning the screws,” said Paul Dales, chief UK […]