The UK inflation rate has shown a slight decrease, dipping below 10% as petrol and diesel prices came down.
Latest figures from the Office for National Statistics (ONS) show that consumer price inflation stood at 9.9% in August, down from 10.1% in July.
Fuel prices have surged in recent months, driven by the war in Ukraine, but wholesale costs declined after fears of a US recession hit demand for oil, BBC News reports.
Petrol prices fell by 14.3p per litre between July and August, while diesel prices dropped by 11.3p per litre.
The decrease in fuel prices was partially offset by price rises for other goods, notably food and soft drinks which increased by 1.5% over the month, the largest July to August rise since 1995.
Research firm Kantar said on Tuesday that as food prices continue to rise, the average annual grocery bill will increase by £572 if shoppers don’t make changes to what they buy and how they shop to cut costs.
Despite the small drop in inflation, prices are still rising much faster than wages — and the rate remains considerably higher than the Bank of England’s 2% target.
Economists expect a further interest rate rise to be announced when the Bank’s Monetary Policy Committee meets next week.
