The rate of inflation has fallen again. CPI rose 7.9 per cent on the year in June, down from 8.7 per cent on the year in May. This takes the headline rate back to its lowest level since March last year – although it remains the highest across major economies.
A drop in motor fuel prices was the biggest contributor to the dip in the headline rate, bringing down transport costs. We are starting to see some movement in food prices too, which continued to rise on the year to June by a painful 17.3 per cent, ‘but by less than in June 2022, also leading to an easing in the rates’.
Today’s update is being reported as a good news story – indeed the first one on inflation for some time. Is it a good news story though? While the headline rate has come in lower than market expectations (which sat at 8.2
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