In a notable dip, the UK's annual inflation rate for July hit its lowest in 15 months, anchored by a decrease in energy costs, and aligning with economists' predictions, recent official data revealed.The Office for National Statistics (ONS) reported Wednesday that the Consumer Prices Index (CPI) climbed by 6.8% annually, a decline from the 7.9% in June, offering some relief from the nation's escalating living costs.This aligns with projections made by analysts and financial institutions, including the Bank of England, which had pegged the rate at 6.8%.Interestingly, June saw an unexpected decline with the CPI dropping 0.8%. Nevertheless, for several months now, UK's inflation has topped the list among G7 countries.July saw a reprieve in gas and electricity costs, even though food prices inched upwards. The reduction in gas and electricity prices primarily drove the downturn in inflation for the second month in a row. And while still substantial, there was a noticeable ease in the inflation of food prices, especially staple items like milk, bread, and cereals.What does this mean for me?Prime Minister Rishi Sunak has laid down an ambitious plan: to cut inflation by half by the year 2024, targeting a 5% rate. Recent hikes in interest rates, starting from late 2021, have cast financial shadows across the UK, notably causing upheaval in the mortgage sector as lenders upped their home loan rates.In a related economic update from Tuesday, UK unemployment saw a surge in the quarter leading up to June's end, but the nation also witnessed wage growth at a record-setting pace.