The rate of price rises has fallen sharply, according to official figures.
The key, consumer price index (CPI) measure of inflation fell to 6.8% in the year to July, down from a rate of 7.9% in June, Office of National Statistics (ONS) data showed.
It means prices are still rising but at a slower rate than before as the energy regulator Ofgem changed the energy price cap in July which brought down bills.
Inflation came down as some goods and services became cheaper: • electricity • gas • milk • bread • cheese • petrol and diesel
The rate of inflation was still high due to price increases in: • hotels • air travel
There was a record fall in monthly gas prices, they fell by 25.2% between June and July, the largest drop since the ONS began collating the data in 1988. At the same time the cost of services rose to a 30 year record of 7.4% – the highest rate since March 1992.
Further inflation falls are expected, with the Bank of England forecasting the rate will drop to 5% by the end of the year, still more than double the Bank’s 2% inflation target.
Another measure of inflation, which does not track items susceptible to sharp rises and falls, such as food and energy, was static. Core inflation remained at 6.9%, likely to be of concern for the people who decide interest rates, the Monetary Policy Committee members.
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Food price rises remained seven times higher than a year ago at 14.9% despite a significant fall from the June 17.3% rate of food inflation.
The rate of inflation has taken on political significance. Prime Minister Rishi Sunak made halving inflation one of his five pledges and said it was “on me personally” if the goal isn’t met.
It’s the Bank of England, however, which is tasked with increasing interest rates to take make borrowing more expensive to take money out of the economy and reduce inflation. So far they’ve upped rates 14 times in a row with another increase due to come next month.
Following the announcement, the market expects the base interest rate will reach a high of 6%.
Prices began to rise during the pandemic when difficulty with goods supply chains pushed up costs.
This was worsened when Russia invaded Ukraine and energy prices soared as countries in the West competed for alternative sources of energy in their move away from Russian oil and gas.
The UK is now back at the rate of inflation seen the invasion in February 2022.
As the cost of energy has come down, so too has the overall rate of inflation.
Now, a key driver of overall price rises is an increase in wages. For the first time in nearly two years, wage growth in the private sector surpassed the rate of inflation.
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1:04
Inflation falls to 6.8% year to July – from 7.9%
Responding to the figures, Chancellor Jeremy Hunt said: “The decisive action we’ve taken to tackle inflation is working, and the rate now stands at its lowest level since February last year.
“But while price rises are slowing, we’re not at the finish line. We must stick to our plan to halve inflation this year and get it back to the 2% target as soon as possible.”
Labour’s shadow chancellor, Rachel Reeves, said: “Inflation in Britain remains high and higher than many other major economies. After 13 years of economic chaos and incompetence under the Conservatives, working people are worse off – with higher energy bills and prices in the shops.
“Labour’s plan to build a strong economy will make working people better off by boosting growth, improving living standards and cutting household bills.”
Former deputy prime minister Sir Oliver Dowden has become the most senior ally of Rishi Sunak to be interviewed in the official investigation into betting on the date of the general election, Sky News understands.
A source close to Sir Oliver said the former senior cabinet minister is not and was never under investigation himself.
It is understood Sir Oliver spoke to the police to assist with their inquiries as part of their investigation into others. This is said to have taken place in early summertime and the officers involved were part of the Gambling Commission.
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The inquiry – launched in June – is set to continue for another three to six months.
Ironically, the Gambling Commission’s head office, on the fourth floor of Victoria Square House, Victoria Square, Birmingham, is just a half-mile, 10-minute walk from the ICC, where the Tory conference is taking place.
Sir Oliver was knighted and Mr Booth-Smith was awarded a peerage in the former prime minister’s dissolution honours, announced less than an hour before the polls closed on 4 July.
The commission is investigating whether bets were placed on a July election by people with inside knowledge – in breach of gambling rules – in the days leading up to Mr Sunak’s shock announcement of the election date on 22 May.
A source told Sky News: “The general election betting investigation is still ongoing. Hundreds of documents have been seized by the Gambling Commission from CCHQ.
“The Gambling Commission has also employed more ex-police as investigators to take the case forward. It’s expected the case will continue for three to six months.”
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2:46
Gambling scandal: Another bruise for the Tories?
Asked if Mr Sunak has been interviewed, the source said: “I don’t believe so. Numerous people have been interviewed, in and out of CCHQ.
“Gambling Commission investigators have made numerous visits to CCHQ. Oliver Dowden was interviewed.”
What is the election betting scandal?
The election date betting scandal began in June when Craig Williams, formerly MP for Montgomeryshire and Mr Sunak’s parliamentary private secretary, admitted he was being investigated by the Gambling Commission.
Mr Williams had placed a £100 bet on a July election at Ladbrokes in his constituency just days before Mr Sunak announced on 22 May that the election would be held on 4 July. Based on odds at the time, he would have won £500.
“I put a flutter on the General Election some weeks ago,” he said in a post on X on 13 June. “This has resulted in some routine inquiries and I confirm I will fully co-operate with these.
“I don’t want it to be a distraction from the campaign. I should have thought through how it looks.”
Mr Williams, who admitted he had made a “huge error”, was dropped by the Tories as their candidate in the new seat of Montgomeryshire and Glyndwr but remained on the ballot paper, but was defeated, coming third behind Labour and Reform UK.
As the Gambling Commission proceeded, Tony Lee, the party’s director of campaigns, and his wife Laura Saunders, who was Tory candidate for Bristol North West, were placed under investigation.
In a statement on the day news of the investigation was first reported, Saunders said she would be “cooperating with the Gambling Commission”, while Lee took a leave of absence from his role.
Then Nick Mason, the party’s chief data officer, became the fourth Conservative candidate or official to be investigated. He took a leave of absence and denied any wrongdoing.
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In a bizarre twist, a Labour candidate in the election, Kevin Craig, was then suspended by his party after betting against himself and the Gambling Commission launched an investigation into him.
Mr Craig, candidate in Central Suffolk and North Ipswich, posted on X that he had “enjoyed the odd bet for fun” throughout his life.
“A few weeks ago when I thought I would never win this seat I put a bet on the Tories to win here with the intention of giving any winnings to local charities,” he said.
“While I did not place this bet with any prior knowledge of the outcome, this was a huge mistake, for which I apologise unreservedly.”
Then on 27 June Sky News revealed that Mr Booth-Smith, then Mr Sunak’s most senior adviser in Downing Street, had been interviewed by senior Gambling Commission officials and questioned about who knew about the timing of the election.
Sources emphasised, however, that Mr Booth-Smith was not a suspect and was interviewed as a witness and was “asked for help”.
Sky News has approached Mr Dowden and the Conservative Party for comment.
Fresh weather warnings have been issued for heavy rain, with some areas already saturated by earlier downpours to be hit.
Parts of the country saw more than the monthly average rainfall on Monday, while some counties in southern and central England have already had more than 250% of their September average, according to the Met Office.
Yellow weather warnings for wind and rain came into force on Sunday, while two fresh yellow warnings have been issued for heavy rain next week.
Sunday’s warning, meaning further heavy rain is likely to cause some travel delays and flooding, covers much of southern England and South Wales between 4pm on Sunday and 9am on Monday.
Between 20mm to 30mm of rainfall could be seen over nine to 12 hours, with up to 80mm in some localised places on higher ground.
The Environment Agency has issued 33 flood warnings, indicating flooding is expected, and 67 flood alerts, where flooding is possible, in place across England on Sunday afternoon.
Mark Garratt, flood risk manager at the Environment Agency, said rain expected on Sunday and Monday will bring a risk of surface water flooding in large parts of the southwest and southern England, spreading up into the Midlands, and on Monday, flooding in parts of Leicestershire is also possible.
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He said: “It is especially important that people do not drive through flood water – it is often deeper than it looks and just 30cm of flowing water is enough to float your car.
“Across the country, Environment Agency teams have been out checking flood defences and clearing any debris from storm drains and are also supporting local authorities in responding to surface water flooding.
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“The advice to the public to keep checking their flood risk, and search ‘check for flooding’ and to sign up for free flood warnings on the latest situation or follow @EnvAgency on X for the latest flood updates.”
A yellow warning for wind is in place across southwest England and Wales between 9am on Sunday until the end of the day.
Gusts of between 50mph and 60mph could be seen, with large waves, trees brought down, travel disruption and some power cuts.
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Rain warnings cover eastern England between 8am on Monday and 3am on Tuesday, and North Wales and northwest England between 12.30am and 8pm on Monday.
Both forecast between 20mm and 40mm of rainfall widely, with 60mm possible in a few places across North Wales and northwest England and between 60mm to 80mm in some areas in eastern England.
Met Office meteorologist Liam Eslick said they are expecting some “pretty heavy persistent rain” across North Wales and northwest England.
The higher ground in eastern England will see the most rainfall. Areas including Northamptonshire and Bedfordshire will see less rainfall, but are already saturated by recent heavy rain.
About 650 properties were flooded in Bedfordshire, Northamptonshire and the home counties, according to the Environment Agency, which estimated around 8,200 properties had been protected.
By Tuesday night, higher pressure will move in, meaning a drier, sunnier spell, Mr Eslick said.
“Come Tuesday night into Wednesday we’re starting to see higher pressure, so turning a lot drier and plenty of sunny spells,” he said.
“But the following weekend, it does look like there’s a further low pressure coming in, but we’re still keeping an eye on that.”
Lewis Hamilton has said he has struggled with his mental health “for much of his life”, and blames the pressure of motor racing and bullying that he suffered at school.
Hamilton, 39, is one of the most successful Formula One (F1) drivers in history, having won a joint-record seven world titles.
The racer, who was born in Stevenage, has won more F1 races (105) than anyone else and also holds the records for most pole positions (104), and podium (top three) finishes (201).
But despite his career successes, he told The Sunday Times he had “some really difficult phases” during his 20s, admitting he has “struggled with mental health through my life”.
“[I’ve had] depression. From a very early age, when I was, like, 13. I think it was the pressure of the racing and struggling at school. The bullying. I had no one to talk to,” he said.
His life changed, he revealed, during the coronavirus pandemic in 2020, when, following a period of soul-searching, he began waking up at 5am to meditate before going for a run.
Despite initially struggling to find peace, he said the new routine was “a really great way of getting in touch with myself, my inner feelings, understanding what I can do”.
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Asked if he has ever seen a therapist, Hamilton replied: “I spoke to one woman, years ago, but that wasn’t really helpful. I would like to find someone today.”
Hamilton, who earlier this season became the oldest driver to win a Formula One race in the 21st century, will not add to his tally of championship titles this year.
With six races remaining, the Mercedes driver is sixth in the standings but trails the championship leader, Max Verstappen, by 157 points with only 150 left to win.
He will move to Ferrari at the end of this season after 12 years with Mercedes.