The UK inflation rate fell to 2% in the year to July as the final coronavirus restrictions were lifted, latest figures show. The Consumer Prices Index measure of inflation was down from 2.5% the previous month, according to the Office for National Statistics, and was driven by falls in clothing and footwear prices. The main contributors were “good sales” in the clothing shops over the summer, computer games and food prices, which are down year-on-year, says Liz Martins, UK economist at HSBC. The dip “puts the brakes on those who argue that inflation is about to go out of control,” she adds.
