A sharp drop in UK inflation compounded a summer of market volatility leaving analysts unsure what the Bank of England’s next move on interest rates would be.
UK Daily View
Video: Chris Giles looks at the impact on interest rates
July’s annual consumer price inflation rate plummeted to 1.9 per cent from 2.4 per cent in June, surprising investors who had expected a modest drop to 2.3 per cent. It was the largest monthly fall for five years in annual CPI inflation and the first time the measure was below the bank’s 2 per cent target since March 2006.
