Inflation falls to 3.2% in June

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UK inflation dropped for a second consecutive month to 3.2% in June, driven by falling petrol and clothing prices, according to the Office for National Statistics.

Consumer prices index (CPI) annual inflation was down from 3.4% in May but is still well above the Bank of England's 2% target. The ONS said falling petrol and diesel prices primarily accounted for the drop, which was slightly above expectations of a fall to 3.1%. Another significant driver was decreasing clothing and footwear prices after a record June sales season. Upward pressure came from house contents and care insurance where average premiums increased between May and June. In the year to June, the retail prices index (RPI) - which includes mortgage costs and is used in pay t...

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