- 3 updates
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
The headline rate of retail price index inflation fell to 2.8% in June, from 3.1% in May, the Office for National Statistics (ONS) said. The underlying rate of retail price index inflation fell to 2.8% in June, from 3.1% in May, the ONS added.