Lower fuel prices help drive inflation down to 2.6%
The UK rate of inflation has slowed to 2.6% in the year to June, driven by lower fuel and food prices, according to new figures
The UK rate of inflation has slowed to 2.6% in the year to June, driven by lower fuel and food prices, according to new figures. The June figure was down from 2.8% in the year to May, the Office for Statistics (ONS) said. Food prices also fell, driven by cheaper goods such as chocolate, beef and margarine.
ONS chief economist Grant Fitzner said: "A fall in motor fuel prices, particularly diesel, helped ease inflation in June." The price of clothes also fell, he said, due to start-of-summer sales which had bigger discounts than last year. Food and non-alcoholic beverage prices fell by 0.2% month-to-month, with sugar, chocolate and confectionery seeing the largest drop in price.
Meat and vegetable prices rose in June but the increase was smaller than the same time last year. Prices of oils, fats and dairy fell in June, compared to a year previously. Food inflation often has a lag of up to 13 months due to the supply chain, so any effects from the war in Iran could still be yet to come.
Fuel prices at the pump fell in June after the US and Iran agreed to halt military operations and allow the key Strait of Hormuz to re-open. But the recent resumption of hostilities and a new jump in crude oil prices means inflation could spike again in the coming months.
The BriefWire