Inflation Slows Below Expectations: UK, USD/CAD, and Alberta React

UK inflation rate fell to 7.9% in June, below expectations of 8.2%, but still well above the Bank of England's 2% target. Core inflation remained high at 6.9%, while falling prices for motor fuel contributed to the decline in the CPI annual rate. The government and the Bank of England have warned that persistently high inflation could become entrenched in the economy. The Bank of England recently implemented a 50-basis-point interest rate hike, its 13th consecutive increase, to rein in inflation. However, stubbornly high core inflation and food costs mean the latest inflation figures offer little relief to struggling households and businesses.