Newly appointed Chancellor John Healey said falling inflation is ‘news families want to hear’
A drop in the costs of motor fuels helped UK inflation cool to 2.6 per cent in June from 2.8 per cent in May, the Office for National Statistics said.
Before the announcement, most economists believed a sharp drop in petrol and diesel prices would have helped pull the overall inflation rate down.
The RAC said the average price of a litre of diesel at UK forecourts dropped by more than 16p from the start to the end of June – the largest fall since records began in 2000.
This was driven by news of an interim ceasefire deal between the US and Iran, prompting oil prices to fall below pre-crisis levels.
Newly appointed Chancellor John Healey said: “Falling inflation is news families want to hear but there is much more to do to give people the breathing space they need.
“That is why yesterday we cut VAT on electricity bills and today we’re announcing a £2 cap on bus fares from January.
“We have chosen to focus on the cost of living in our first week, signalling that concern for working people will be at the heart of everything we do.
“Both these changes are a win-win. They help keep inflation down while helping people afford the essentials.”
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