UK inflation stats lower chances of rate hike

The UK's inflation rate has fallen below its target 2% rate for the first time in 15 months, fuelling speculation that interest rates have peaked at 5.75%.

The Office for National Statistics (ONS), the UK's official data provider, calculated that inflation had fallen to 1.9% in July. The pound was down, trading at below $2, as currency traders responded to the news.

The ONS said lower food prices, due to a supermarket price war, were the main factor in the fall. Cheaper furniture, petrol, dig