UK: Inflation dropped to 3.1%

Inflation dropped to 3.1% in July in Great Britain, but remained above 3% as it was expected. As it was announced, the annual inflation rate fell to 3.1% from 3.2% in June. Although this is the lowest level since last February, this was the eighth consecutive month that inflation remained above the 2% which is the target set by the Bank of England (BoE).
Therefore, the governor of BoE Mervin King has to send the third – for this year – , open survey to the British Government with listed reasons why inflation is still above 2%.
In a letter to Finance Minister Mr. George Osborne, King is expected to justify the high inflation levels to temporary factors and restate his optimism that the annual inflation rate will fall below 2% within the next two years.
According to UK statistics office, the inflation rate in July dropped mainly due to the reduced prices in the transports sector.