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Figures released this morning by the Office for National Statistics (ONS) show inflation fell to 2.6 per cent in June – down from the 2.8 per cent recorded the month before and the lowest rate since March last year.
The slowdown was mostly driven by lower fuel costs at petrol and diesel pumps, while food pressures eased too.
It’s welcome news for new Prime Minister Andy Burnham and his Chancellor John Healey as they look to crack on with their measures aimed at tackling the cost of living.
Whilst the rate of price rises remains well above the Bank of England’s two per cent target, it is trending downwards far faster than the Bank’s forecasts had suggested.
