UK inflation rate eases as the price of petrol falls 

Inflation reached 9.9% in the year to August.

UK inflation rate eases as the price of petrol falls  iStock

The UK inflation rate has eased slightly, but remains close to a 40-year high.

According to the Office for National Statistics (ONS), inflation reached 9.9% in the year to August.

It is a slight decrease from 10.1% in July, with lower diesel and petrol prices taking some of the pressure off of struggling households.

Inflation is the term used to describe rising prices. How quickly prices go up is called the rate of inflation.

The Bank of England has stated that inflation could peak at more than 13% this year.

The ONS indicate that the biggest downward pressure on the inflation rate was the price of motor fuel.

“The easing in the annual inflation rate in August 2022 reflected principally a fall in the price of motor fuels in the transport part of the index,” the ONS said.

“Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear.”

Experts believe that the support on energy bills announced by the UK Government last week will ensure that inflation does not reach the concerning highs that had been forecast.

According to one prediction, CPI inflation could have peaked above 20% as energy bills continued to rise.

Prime Minister Liz Truss announced that bills will be capped at £2,500 per year for the average household for the next two years.