UK inflation fell to the lowest rate in 15 months in June as food and fuel prices dropped in an early boost to the cost-of-living-focused Andy Burnham.
The rate of Consumer Prices Index (CPI) was 2.6 per cent in June, down from 2.8 per cent in May, according to the Office for National Statistics (ONS).
This was the lowest level since March 2025, and also came in below the 2.7 per cent rate that most economists had been expecting.
The lower-than-expected CPI rate is set to provide some relief to new Prime Minister Mr Burnham, who has made efforts to ease the cost of living a top priority.
ONS chief economist Grant Fitzner said: “A fall in motor fuel prices, particularly diesel, helped ease inflation in June.
“Food prices fell this month, driven by products including chocolate, margarine and beef.
“Clothing prices also fell with the start of summer sales, with bigger discounts than last year.
“The cost of raw materials dipped for the first time since January, mainly due to the lower price of crude oil, while the increase in the costs of goods leaving factories slowed again.”
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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