June Inflation Eases to 2.6% Amid Lower Transport Costs

UK inflation eased to 2.6 per cent in June, down from 2.8 per cent in May, due to lower transport and food price pressures.

The Consumer Prices Index (CPI) fell to an annual rate of 2.6 per cent, while the broader CPI including owner occupiers' housing costs (CPIH) slowed to 2.8 per cent from 3.0 per cent in May.

Transport costs, along with food and non-alcoholic beverages, made the largest downward contributions to the fall in both CPIH and CPI inflation.

Felix Feather, economist at Aberdeen Investments, said that while the latest figures offer 'welcome relief' for policymakers, household energy bills have yet to fully reflect this summer's energy price shock.