Weekly Market Commentary - 21 August 2023

This week has been a busy one for UK economic data. Headline inflation continued its steady decline as lower fuel costs helped the Consumer Prices Index fall from 7.9% to 6.8% in July. Food costs continue to make up a significant part of CPI inflation but this is also dropping quite fast. However, markets were disappointed by the lack of movement in core inflation (excluding more volatile food and fuel costs) as this was unchanged.

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