Inflation eases in UK and Eurozone, providing relief to central banks

UK inflation slowed to its lowest annual rate since March 2022, with consumer prices rising 7.9% compared to a year ago, down from 8.7% in May. The slowdown in price rises may lead the Bank of England to raise interest rates by only a quarter of a percentage point next month. Core inflation also decreased to 6.9%, and food price inflation fell to 17.3%. The data suggests a weakening of underlying inflationary pressures, providing some relief to the Bank of England. However, consumers and businesses will still face rising prices, and strike action in the coming weeks threatens travel chaos.