Inflation has gone against expert opinion and actually dropped - but life is still far from 'normal'

According to the Office for National Statistics, the Consumer Prices Index inflation in August was 6.7 percent, compared to 6.8 percent in July. That's the lowest level of inflation since February 2022.

When we consider that inflation reached 11.1 percent in October 2022 - the highest it was in around 40 years - it's clear things are improving. That said, the Government has a target of keeping inflation at 2 per cent which means the current figure is still more than three times above that.

The slowing down in food prices is playing a role here as prices for milk, cheese and vegetables all fell in August 2023. At the same time, there has been a drop in airfares and accommodation costs. Food and drinks contribute the most to inflation at 13.6% with alcohol and tobacco coming in next at 10.5%.

Despite optimism from an unexpected fall, inflation is still very high in the UK and there are a number of reasons behind this.

While wholesale gas prices did begin to quickly fall last year, they remain well above their levels before the pandemic and Russia's war in Ukraine. Soaring energy bills are a major factor behind the inflation rate.

Some experts also link Brexit to raising inflation - although a direct relationship in the midst of a war and following a pandemic is hard to nail down.

Inflation still remains higher than at the end of 2019 when inflation stood at a comparably miniscule 1.3 per cent.

Following dips and volatility in 2020, during the pandemic, inflation then began to steadily rise by 2021 onwards and peaked in October last year.

So while the graph is showing a more encouraging trend in the six months since then, things are far from being at the levels they were before the pandemic.