Economists across the country woke up to surprising new inflation figures this morning. The rate of the Consumer Prices Index (CPI) fell to 6.7 per cent in August, down from 6.8 per cent in July, and the lowest rate since February last year.
It comes after the Bank of England had predicted inflation to soar to around 7.1 per cent, citing an increase in motor fuel costs.
However, the Office for National Statistics said a halt on food price inflation and falling restaurant and hotel prices helped offset rising costs for petrol and diesel.
The new figures are likely to have an immense impact on the Bank of England's review of the base rate tomorrow (September 21). Read more: Inflation FALLS despite forecasts - with food price increases slowing down Some economists are now calling for interest rates to not increase above 5.25 per cent.
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