UK inflation enjoys decrease

Inflation in the UK unexpectedly fell last month as retailers cut prices in response to the tightening squeeze on household incomes, figures revealed today.

Reductions in the prices of digital cameras, televisions and women’s shoes prompted a fall in the Consumer Prices Index (CPI) to an annual rate of 4.2% in June, the Office of National Statistics (ONS) said, against consensus City forecasts of no change from May’s figure of 4.5%.