Surprise UK inflation fall raises prospect of BoE rate hike pause

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Surprise UK inflation fall raises prospect of BoE rate hike pause
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CPI unexpectedly fell to 6.7% in August.

British inflation remains high - topped only by Austria and Iceland among Western European countries in August.remained on courseBut Wednesday's data showed core inflation - which strips out volatile food and energy prices - fell unexpectedly sharply to 6.2% from 6.9% in July.

As well as a relief to the BoE, which came under criticism when inflation surpassed 11% last October, the latest figures were welcomed by the government of Prime Minister Rishi Sunak. He has promised to halve inflation this year before an election expected in 2024. "But it is still too high which is why it is all the more important to stick to our plan to halve it so we can ease the pressure on families and businesses."

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