UK inflation falls to 2.6% in June, ONS says
UK inflation dropped to 2.6% in June, the lowest it has been in over a year, according to the Office for National Statistics.
That is down from May's 2.8% and even lower than experts predicted.
The main reason? Cheaper gasoline and diesel, thanks to falling crude oil prices as U.S.-Iran tensions cooled off.
Andy Burnham will scrap electricity VAT
Food prices also eased up, and big sales on clothes helped keep costs down.
But services like restaurants and travel are still pricier than expected, with inflation there only dipping slightly to 3.6%.
Economists say this might be as low as it gets for now: energy bills just jumped by 13% in July, and rising oil prices could push inflation back up soon.
On a brighter note, Prime Minister Andy Burnham announced that VAT will be scrapped from household electricity bills starting in October, which should help keep living costs in check (at least a bit).