Inflation falls to 2.4%
The UK inflation rate dropped sharply in June with the Consumer Prices Index falling to 2.4%, its lowest level since November 2009.
While still above the Bank of England’s 2% target, the figure has surprised economists who were expecting a much smaller fall.
The Office for National Statistics said annual consumer price inflation dropped from 2.8% in May due to falls in the prices of clothing and footwear as a result of early summer sales. Clothing and footwear costs dropped 4.2% while food prices edged 0.1% lower. Falls in the price of petrol and diesel also made a significant contribution to the decline.
The ONS said the largest upward effect on prices came from recreation and culture, where the price of digital cameras fell more slowly than a year ago.
Never Miss a Retail Update!The Retail Prices Index also fell, dropping to 2.8% in June from 3.1% in May.
