Missing expectations, UK inflation continued to decline in August, opening the door for the Bank of England (BOE) to end its tightening cycle.
Most recently, the Office for National Statistics (ONS) reported the UK's annual consumer price index (CPI) rose to 6.7%, down from a 6.8% rise in July.
The recorded figure also missed the market's expectation to increase again to 7.0%.
This indirectly marks the lowest rate since February 2022, mainly due to a sharp fall in food inflation and a drop in the cost of accommodation services.
In addition, core inflation (excluding energy and food prices) was reported to have decreased to 6.2%, the lowest rate recorded since March and well below the forecast of 6.8%.
However, both figures remain well above the central bank's 2% target.
Last month, the BOE expected inflation in August to rise to 7.1% before falling sharply to around 5% in October.
Investors expect the central bank to raise interest rates at its policy meeting tomorrow (Thursday) to 5.5%. However, this may be the last hike by the BOE following a slowing UK economy.
Following the data, the pound currency recorded a lower decline to a price level of 1.2333 against the US dollar.
