Food and fuel prices drive further inflation fall

Inflation fell to 7.9% in June – the lowest figure of 2023 – and down from 8.7% in May.

The drop was driven by a 2.7% drop food and fuel prices – and is a bigger fall than the 8.2% figure that most analysts were predicting.

Meanwhile, core inflation, which excludes the more volatile figures around food and fuel prices, fell from 7.1% to 6.9%.

Office for National Statistics chief economist Grant Fitzner said: “Inflation slowed substantially to its lowest annual rate since March 2022, driven by price drops for motor fuels. Meanwhile, core inflation also fell back after hittin a 30-year high in May.

“Food price inflation eased slightly this month, although it remains at very high levels.”

Chancellor of the Exchequer 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.”