"Core inflation continues to be a thorn in the central bank’s side"

Giles Coghlan, chief market analyst at HYCM:

“Today’s modest decline to 7.9% may signal to investors that economic pressures are gradually easing.

“However, core inflation continues to be a thorn in the central bank’s side at 6.9%, highlighting the risk that domestic inflationary pressures are here to stay for now.

“The implications of this inflation reading go beyond just numbers on a chart.

“The persistence and increasing severity of UK inflation could amplify worries about the country’s economic health on the world’s stage, potentially leading to a decline in the GBP’s value.