UK inflation dropped below the Bank of England's target of 2% in June for the first time in almost two years, official statistics show.
Britain has fallen into official deflation for the first time since 1960, according to new figures from the Office for National Statistics (ONS).
The Consumer Price Index (CPI) reached a ten-year high of 3.8% in June from 3.3% in May, according to the Office for National Statistics.
Core inflation surged in December largely because of higher fuel duties according to latest Office for National Statistics data, justifying, economists say, the Bank of England's interest rate rise of last week.
A poll of around 1,000 adults earlier this month has found most are ignorant of the effects of retail price index inflation or tax on savings, according to National Savings & Investments.
Latest National Statistics figures suggest consumer price inflation fell to a rate of 1.1% in September from 1.3% in August, implying less pressure on the Bank of England to increase interest rates.
April inflation figures just published by the Office for National Statistics show rising oil prices have substantially impacted on prices in the UK.