UK inflation eases to 2.6% in June on cheaper fuel
Good news: UK inflation eased to 2.6% in June, down from 2.8% in May, beating expectations.
The main reasons? Cheaper fuel (especially diesel), lower prices for foods like chocolate and beef, and summer clothing discounts.
For the first time in months, raw material costs also fell, mostly due to a drop in crude oil prices.
John Healey announces electricity VAT cut
Chancellor John Healey said the falling inflation rate was welcome news, but said people still need more help with rising costs.
From October, VAT on electricity bills will be cut, saving households about £45 a year, and there'll be a £2 cap on single bus fares across England starting January 2027.
Still, economists warn that if global oil prices rise again (thanks to conflicts in the Middle East), inflation could bounce back.