UK CPI inflation steady at 1.8%

UK inflation measured by the Consumer Prices Index (CPI) remained steady in July at 1.8% from the previous month, Office for National Statistics figures show.

In June, CPI fell below the Bank of England's target of 2% for the first time in almost two years, down from 2.2% in May as supermarkets slashed food prices to attract cash-strapped shoppers. The Retail Prices Index (RPI), which includes housing costs, was down 1.4%, less than last month's 1.6%. Analysts had expected RPI to drop to -1.7% and CPI to fall to 1.5%. Richard Snook, senior economist at Centre for Economics and Business Research (CEBR), says the slow rate of decline in inflation has been surprising, with forecasts made in December last year that CPI would fall to zero by ...