. 1 Inflation dropped in June this year Credit: Getty Inflation is a measure of how the price of goods and services has changed over the past year. The ONS said falling prices of motor fuel led to the biggest contribution to the change in inflation. While food prices did rise in June, they increased by less compared to June 2022. However, core CPI inflation, which excludes energy, food, alcohol and tobacco, rose by 6.4% in the last year leading up to June. That's a slight drop from 6.5% in May which was the highest rate for more than 30 years. ONS 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 hitting a 30-year high in May. 'Food price inflation eased slightly this month, although it remains at very high levels. 'Although costs facing manufacturers remain elevated, especially for construction materials and food items, the pace of growth has fallen across the last year, with the overall cost of raw materials falling for the first time since late 2020.' Also commenting on today's figures, 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." What it means for your money A drop in inflation usually means that prices are dropping, but only ever so slightly - people will still be feeling the pinch. Adam Bullock, UK director at TopCashback said that while infl){kind=link}
THE UK’s rate of inflation has dropped more than expected to 7.9% in June this year.
The Consumer Price Index level of inflation decreased from 8.7% in May, according to the Office for National Statistics (ONS).
Inflation is a measure of how the price of goods and services has changed over the past year.
The ONS said falling prices of motor fuel led to the biggest contribution to the change in inflation.
While food prices did rise in June, they increased by less compared to June 2022.