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The annual UK inflation rate, in a surprise, eased back into single-digits in August, the Office for National Statistics said on Wednesday.
The consumer price index rose 9.9% year-on-year in August, unexpectedly slowing from 10.1% in July. Consensus, according to FXStreet, was for the rate reading to tick up to 10.2%.
July's figure had been the highest since current records began in 1997 and at a level, according to models, not seen since 1982. Inflation remains far higher than the Bank of England's 2% target.
A fall in the price of motor fuels made the largest downward contribution, while rising food prices were the largest upward contributor.
Month-on-month, inflation eased to 0.5% from 0.6%.
Core CPI - which excludes energy, food, alcohol and tobacco - edged up as forecast, to 6.3% from 6.2%.
Separately, the ONS said input producer prices rose 21% in the year to August, easing from 23% in July. Output prices rose by 16%, again easing from 17% in July.
‘Crude oil and petroleum products provided the largest downward contributions to the change in the annual rates of input and output inflation, respectively,’ the ONS said.
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