Inflation at lowest since Nov '09

The rate of consumer price index inflation has fallen to 2.4%, its lowest level since November 2009. The headline rate of retail price index inflation fell to 2.8% in June, from 3.1% in May.

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Petrol, food and clothing driving down the cost of living

Economist Alan Clarke says the cost of living is falling because of cheaper petrol, food and clothing.

  • Although petrol prices are down the recent rise in oil prices means the effect is unlikely to last
  • Food inflation dropped because the big increase a year ago was not repeated
  • Clothing was very low, partly because of the wet weather. Because it keeps raining, clothing prices should stay low as stores try to shift summer stock

Falling cost of living 'won't cure crisis in living standards'

While the sharp fall in inflation will bring welcome relief for many workers, millions are still facing real wage cuts as the longest squeeze in living standards for decades continues. Falling inflation alone won’t tackle our living standards crisis. We also need to see stronger wage growth, and for the government to reverse damaging cuts to tax credits.

– Brendan Barber, TUC General Secretary

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