UK inflation fell across all areas in June to a lower level than predicted as prices rose at a slower pace.
The rate of inflation has fallen to 7.9% in June down from 8.7% in May, according to the consumer price index (CPI) figures from the Office for National Statistics (ONS).
The CPI measure of inflation shows prices are still rising but at a slower pace than before.
Core inflation, which excludes food and fuel, dropped for the first time since January to 6.9%. Core inflation was expected to be stuck at 7.1% – the same as the rate in May.
Forecasters predicted a fall in CPI from 8.7% to 8.2%, but falling fuel and food prices rising at a slower rate helped CPI fall to 7.9%.
The rate of food inflation fell to 17.3% in June from 18.3% in May.
In response to today’s figures, chancellor Jeremy Hunt said: “Inflation is falling and stands at its lowest level since last March, but we aren’t complacent and know that high prices are still a huge worry for families and businesses.
“The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this year.”
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