THE consumer prices index (CPI) has fallen from 3.4 per cent to 3.2 per cent in June, official figures have shown.
That is still well above the Bank of England’s inflation target of two per cent.
Meanwhile the Retail Prices Index – which includes mortgage and council tax payments – came down from 5.1 per cent to fiver per cent, according to the Office for National Statistics (ONS).
Summer sales saw clothing and footwear prices dip by 2.1 per cent over the month – the biggest.
Meanwhile, petrol prices fell by an average of 2.6p a litre to 117.9p, in contrast with a 4.4p hike a year ago.
Howard Archer of Global Insight said: “We expect consumer price inflation to head down further over the coming months, despite current sticky core inflation.
“Given that oil prices bottomed out in the first quarter of 2010 and then firmed, oil-price related base effects should become more favourable barring a renewed sharp rise in oil prices over the coming months.”