Cheaper fuel helps drive inflation rate down to 2.6%

Inflation dropped back last month as the falling price of fuel and computer games eased the pressure on household spending power.

Lower prices at the pumps saw inflation ease last month. Picture: Lynne Cameron/PA Wire
Lower prices at the pumps saw inflation ease last month. Picture: Lynne Cameron/PA Wire

The Office for National Statistics (ONS) said the consumer prices index (CPI) measure of inflation eased to 2.6 per cent in June, down from 2.9 per cent the month before.

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While the reading came in below economists’ expectations of 2.9 per cent, the rising cost of living remains above the Bank of England’s target of 2 per cent.