Surprise fall in inflation ahead of interest rate decision – latest updates

Thanks for joining us. Inflation fell unexpectedly as the Bank of England prepares to announce its next move on interest rates.

The Office for National Statistics revealed that the consumer prices index increased to 6.7pc in August, up from 6.8pc the previous month.

5 things to start your day 

1) Sunak faces fresh inflation headache as oil price hits $95 | The price of Brent crude closed in on $96 per barrel on Tuesday, the highest level since November 2022

2) City law firms buying solar power from rural homeowners to meet net zero targets | Companies flock to purchase electricity from countryside generators as part of green efforts

3) Westminster council calls for ‘overnight levy’ amid surge in Airbnb rooms | London authority planning additional charge to help pay for city’s upkeep

4) Global debt surges to record $307 trillion amid borrowing binge | Governments and financial services companies fuel a jump in borrowing

5) Elon Musk’s perks at Tesla being investigated by Justice Department, report claims | US prosecutors are examining personal benefits the carmaker may have given its chief executive, including a proposed glass house

What happened overnight 

Asian shares declined as markets awaited a decision on interest rates by the Federal Reserve later today.

Japan’s Nikkei 225 fell 0.1pc to 33,200.34. Australia’s S&P/ASX 200 slipped 0.6pc to 7,152.70. 

South Korea’s Kospi edged down 0.1pc to 2,556.20. Hong Kong’s Hang Seng dipped 0.4pc to 17,932.24, while the Shanghai Composite shed 0.3pc to 3,115.10.

Trade data for Japan showed exports fell 0.8pc last month from a year ago, marking the second straight month of declines, as exports to China lagged, dropping 11pc. 

Japan’s exports to the US rose 5.1pc, while exports to Europe surged 12.7pc. By product category, motor exports zoomed 40.9pc, while those of semiconductors rose 8.1pc, according to Finance Ministry data.

Wall Street stocks retreated while yields advanced on Tuesday. The S&P 500 slipped 9.58 points or 0.2pc to 4,443.95. 

The Dow Jones Industrial Average dropped 106.57 points or 0.3pc, to 34,517.73. The Nasdaq composite lost 32.05 or 0.2pc to 13,678.19.

In the bond market, the yield on the 10-year Treasury rose to 4.36pc to near its highest level since 2007.