The UK’s inflation rate fell to 2.6% in June from 2.9% in May, according to official statistics.

The Consumer Prices Index (CPI) 12-month rate fell for the first time in June since October 2016, when it dropped to 0.9% from 1.0% in the previous month.

The fall in inflation was widely unexpected, especially given inflation rose at its highest rate for four years in May.

Falling petrol prices was the main reason for the downward turn, the Office for National Statistics (ONS) said.

The price of food and non-alcoholic beverages inched up by 0.02%, and alcohol and tobacco by 0.01%.

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