Inflation eases more than expected to 7.9%

Inflation has eased more than expected, falling to 7.9%.

That’s led to predictions that interest rates may not go up as much as feared.

The markets now expect them to peak no higher than 6% by end of the year – still an eye watering increase on a year or so ago.

The fall in inflation was driven by a sharp drop in the price of fuel. Food prices are still rising, but at a slower pace.