Sticky price rises may force Bank of England to deploy its only weapon again

Overall rate of inflation falls but costs are still increasing in some sectors, so another interest rate rise looks likely

• UK inflation falls sharply to 6.8%
• Which UK goods and services have changed most in price?

The UK inflation figures bring welcome news. The annual rate of consumer price inflation fell by more than a percentage point to 6.8% in July. However, stripping out food and fuel, core inflation remains unchanged at 6.9%. Why?

One big reason is the cost of manufactured goods. Manufacturers, like households, have seen a fall in their energy costs over the last year. The global supply chain snags that made importing components expensive have eased.