Inflation falls for first time since October, new data reveals

25 July 2017 - Janet Bird

petrol pump

Inflation in June fell for the first time in eight months, confounding the predictions of retail analysts.

Inflation figures for June had been expected to match May's 2.9 percent, but the Office for National Statistics (ONS) said they instead came in at 2.6 percent.

Falls in the prices of fuel and computer games are believed to have contributed to the drop, which will ease the pressure on the Bank of England to increase interest rates in a bid to address rising prices.

The reduction in inflation will also be good news for hard pressed consumers, who saw annual total pay in real terms fall to its lowest level in three years during the three months to May.

The ONS said if inflation continued to moderate it could bode well for the prospects of economic growth.

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