Business | Jul 22nd 2023 Edition

Britain’s annual rate of inflation stood at 7.9% in June, down from 8.7% in May, a bigger drop than had been expected. Transport costs fell in the consumer-price index, mostly because of cheaper fuel. Food inflation eased to 17.3%. Core inflation, which strips out energy and food prices, was 6.9%, down slightly from the previous month’s rate. The news was welcomed by the government. The Bank of England is still expected to raise interest rates when it next meets, but markets are now expecting a smaller rise of a quarter of a percentage point.