Inflation rate unexpectedly falls

The inflation rate fell unexpectedly in June, with the Consumer Prices Index (CPI) measure down to 4.2 per cent from 4.5 per cent.

The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - also fell, from 5.2 per cent to five per cent, the Office for National Statistics (ONS) figures showed.

The CPI rate has is still well over the Bank of England's two per cent target.