Britain's annual consumer price inflation eased to 2.6% in June from 2.8% in May, coming in below expectations as energy prices moderated. While the slowdown offers relief for policymakers and markets, inflation remains above the Bank of England's target, keeping future interest rate decisions firmly in focus.

The rate of Consumer Prices Index inflation fell to 2.6 per cent in June from 2.8 per cent in May, the Office for National Statistics said today.

Newly appointed Chancellor John Healey said falling inflation is ‘news families want to hear’