The slight drop in the rate of inflation is due to air fares and price movements in the recreation, culture, clothing and footwear sectors, according to the Office for National Statistics (ONS).
A rise in petrol and diesel prices partially offset the fall, the ONS said.
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After Roy Hodgson's resignation following England's humiliating exit from Euro 2016, who are the leading contenders to replace him?
The beleaguered Labour Party leader is clinging onto power in the face of as many as 150 MPs voting to remove him from the top job today.
Mr Osborne said he is "not the person to provide the unity my party needs".