UK inflation continued to show signs of easing in July driven by falling gas and electricity prices.
The latest data from the Office for National Statistics (ONS) reported that the UK consumer price index (CPI) rose 6.8% year-on-year in July, down from 7.9% recorded in June.
However, the figure was slightly higher than market expectations to rise to 6.7%.
This pushed the pound currency up slightly to 1.2750 against the greenback.
Meanwhile, core inflation (excluding food and energy prices) rose 6.9% year-on-year last month, unchanged from June's increase and slightly higher than the 6.8% forecast.
Among the factors driving the decline is the drop in gas and electricity prices, as well as the reduced food price inflation.
In the meantime, Chancellor Jeremy Hunt said the July figures on the cost of living showed that the government's actions were 'successful'.
