Restaurant and hotels provided the largest upward contribution to consumer price inflation last month, where the annual rate rose to 9.6% in July compared to 9.5% in June.

Inflation slowed to its lowest for 17 months in July due to a fall in energy prices and a slowdown in food price increases, according the the Office for National Statistics (ONS).

ONS data shows consumer price inflation was 6.8% in July, down from 7.9% in June.

The easing in the annual inflation rates in July 2023 reflected notable downward effects from food and non-alcoholic beverages. 

Food and non-alcoholic beverage prices rose by 0.1% between June and July 2023, compared with a rise of 2.3% between the same two months a year ago.

This resulted in an easing in the annual rate to 14.9% in July 2023, the slowest annual rate of growth since September 2022.

This is down from 17.4% in June 2023 and from a recent high of 19.2% in March 2023, which was the highest annual rate seen for over 45 years.

The division with the largest upward contribution to the monthly change in the CPIH annual rate was restaurants and hotels, where the annual rate rose to 9.6% in July, up from 9.5% in June.

Much of this was driven by accommodation services, which saw a 12.2% rise in the year to July, up from 11.3% in June.