UK consumer price inflation dropped to 2.6% in June, marking the lowest annual rate in 15 months.
The decline from 2.8% in May was driven by falling costs for fuel and food, providing an early economic win for Prime Minister Andy Burnham’s administration, which has prioritized cost-of-living relief.
The Office for National Statistics confirmed the figures, noting that the annual rate fell below market consensus, marking a further step toward the Bank of England’s 2% target.
The 0.2 percentage point drop exceeded analyst expectations, signaling a faster-than-anticipated deceleration in price pressures.
According to RTÉ Business, the data reflects a broadening easing trend across key household expenditure categories.
The Office for National Statistics confirmed the figures, noting that the annual rate fell below market consensus, marking a further step toward the Bank of England’s 2% target.
This development strengthens the argument for policymakers to maintain a dovish stance, as persistent inflation risks appear to be receding.