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The rate of price rises has dropped to 7.9% in the year up to June, according to the Office for National Statistics (ONS).

The consumer price index (CPI) measure of inflation shows prices are still rising, just at a slower pace than before, as the rate fell from 8.7% in the year to May.

Another measure of inflation, closely watched by the Bank of England when deciding whether to increase interest rates, also fell.

Core inflation – the rate of price rises that excludes food and fuel – dropped to 6.9%. The rate had been increasing since January this year.

The majority of analysts now expected that the Bank will only increase the base interest rate to 5.25% early next month. Prior to the inflation announcement an increase to 5.5% was seen as the most likely outcome.

Also changed since Wednesday morning’s inflation data is the high the base interest rate might reach. It had been expected to top 6% but is now estimated to peak at 5.75%.

Interest rates have been hiked 13 times in a row in an effort to dampen economic activity, take money out of the economy by increasing savings, and bring inflation down to 2%.

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A higher rate set by the Bank means more expensive borrowing and higher mortgage bills.

Economists had thought core inflation would remain stuck at the same level as the month before – 7.1% – and that CPI would only fall to 8.2%.

But falling petrol and diesel costs, and a slowing down in food price rises, led to the surprise drop.

The rate of food inflation fell to 17.3% in June from 18.3% in May.

Also falling was the cost of raw materials – they dropped 2.7% in price – the first time they’ve actually become cheaper since late 2020, the ONS said.

The price of goods leaving factories grew 0.1%, down from a rise of 2.7%.

Prices have been rising since the later pandemic years as supply chain problems and difficulty sourcing goods pushed costs up. The war in Ukraine and ensuing energy crisis saw gas bills at record highs which pushed up costs across the economy.

As a result, inflation reached a high of 11.1% in October.

Chancellor Jeremy Hunt said: “Inflation is falling and stands at its lowest level since last March; but we aren’t complacent and know that high prices are still a huge worry for families and businesses.

“The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this year.”

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BBC and Glastonbury have got questions to answer over ‘appalling’ chants at festival, says Wes Streeting

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BBC and Glastonbury have got questions to answer over 'appalling' chants at festival, says Wes Streeting

A cabinet minister has criticised chants at Glastonbury calling for “death to the IDF” – but has also told the Israeli embassy to “get your own house in order”.

Health Secretary Wes Streeting condemned the chants against the Israel Defence Forces – calling them “appalling” – but notably also criticised the embassy over the conduct of some Israeli citizens in the occupied West Bank.

Glastonbury Festival has said it is “appalled” by the statements made by Bobby Vylan, of punk duo Bob Vylan, during their set on Saturday – saying they “crossed a line”.

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Speaking to Sunday Morning With Trevor Phillips, Mr Streeting said he believed the BBC and Glastonbury had “questions to answer” over what he called a “shameless publicity stunt” during the set of Bob Vylan.

“I thought it was appalling, to be honest and I think the BBC and Glastonbury have got questions to answer about how we saw such a spectacle on our screens,” he said.

“But I also think it’s a pretty shameless publicity stunt, which I don’t really want to give too much indulgence to for that reason.”

He said the focus should instead be on “Israeli settler terrorists” attacking a Christian village just weeks after setting it on fire.

He added: “I’d also say to the Israeli embassy, get your own house in order, in terms of the conduct of your own citizens and the settlers in the West Bank.

“So, you know, I think there’s a serious point there by the Israeli embassy, I take seriously. I wish they’d take the violence of their own citizens towards Palestinians more seriously.

“We all condemned and continue to condemn what happened on 7 October. We all want to see the return of the hostages. And there’s no justification for inciting violence against Israelis.

“But you know, the way in which Israel’s conducting this war has made it extremely difficult for Israel’s allies around the world to stand by and justify. In fact, we’ve got to do the opposite as an international community, which is to challenge and urge a change.”

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What’s the Glastonbury controversy?

The Israeli embassy said it was “deeply disturbed” by the anti-IDF chants, which are being investigated by the police.

Video shows one of the members of Bob Vylan shouting the slogan into the mic and some of the crowd joining in.

The duo were performing ahead of a performance by Kneecap, the Irish act the prime minister believed should have been banned from the world-famous festival.

“The Embassy of Israel in the United Kingdom is deeply disturbed by the inflammatory and hateful rhetoric expressed on stage at the Glastonbury Festival,” a statement said.

It said slogans like Saturday’s chant “advocate for the dismantling of the State of Israel”.

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Police reviewing comments made by two acts at Glastonbury

The Conservatives also criticised the incident, with Helen Whately, the shadow work and pensions secretary, saying she was “shocked” by the footage.

“I was shocked to see some of the footage of that chanting of the crowd,” she told Sunday Morning With Trevor Phillips.

“And the music artist was ramping it up.

“I mean to me, also, one of the horrible things about it is, obviously it’s over a year and a half ago that innocent, festivalgoers at a festival in Israel were raped and murdered by Hamas – and then we have a music festival here in the UK where you have a chant saying death to the Israeli Armed Forces who are, you know, taking action to protect people from what Hamas did in Israel.

“I just think it’s disgusting.”

She added: “Yes, I believe in free speech, but that was incitement to violence. It was incitement to kill. That is not something that we support in this country.”

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An Instagram post published by the festival on Sunday morning read: “As a festival, we stand against all forms of war and terrorism. We will always believe in – and actively campaign for – hope, unity, peace and love.

“With almost 4,000 performances at Glastonbury 2025, there will inevitably be artists and speakers appearing on our stages whose views we do not share, and a performer’s presence here should never be seen as a tacit endorsement of their opinions and beliefs.

“However, we are appalled by the statements made from the West Holts stage by Bob Vylan yesterday.

“Their chants very much crossed a line and we are urgently reminding everyone involved in the production of the Festival that there is no place at Glastonbury for antisemitism, hate speech or incitement to violence.”

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Binance ties to Kenyan crypto board raise monopoly concerns: Report

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Binance ties to Kenyan crypto board raise monopoly concerns: Report

Binance ties to Kenyan crypto board raise monopoly concerns: Report

Kenya’s crypto startups fear a Binance-linked lobby group could tilt new regulations in the exchange’s favor under the proposed VASP bill.

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Welfare concessions should give people ‘peace of mind’, says Wes Streeting

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Welfare concessions should give people 'peace of mind', says Wes Streeting

Wes Streeting has suggested he is confident the government will now win a crunch vote on welfare cuts after Sir Keir Starmer made a number of concessions to prevent a damaging rebellion.

The health secretary told Sunday Morning With Trevor Phillips the alterations to the controversial welfare bill meant those in receipt of benefits now had “peace of mind”.

Asked whether he was confident the government would now win a vote on the reforms scheduled for Tuesday, Mr Streeting said: “Yes.

Politics latest: Minister tells Israeli embassy to ‘get your own house in order’ amid Glastonbury row

“I think the changes that were made this week have put us in a much better position, not just on the vote on Tuesday, but on the substance of the package – because as a result of the changes, it means anyone watching this morning who’s in receipt of PIP, Personal Independence Payments, now has the peace of mind of knowing that their situation is protected.”

It comes after the prime minister carried out the most significant U-turn of his premiership at the end of the week in order to quell a growing rebellion over his welfare package.

More than 120 Labour MPs had signalled they were prepared to vote down the bill next week after they signed an amendment that would have stopped its progress through parliament – citing concerns about the impact on the most vulnerable and the lack of proper consultation with disabled groups.

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The scale of the rebellion – and the fact it spanned all wings of the party – alarmed Downing Street and led to Sir Keir making a number of changes to diffuse the anger.

Originally, the bill set out to tighten the eligibility criteria for PIP – money that is given to people, some of whom are in work, who have extra care or mobility needs as a result of a disability.

People who claim it are awarded points depending on their ability to do certain activities, such as washing and preparing food, which influences how much they will receive.

Currently claimants need to score a minimum of eight points across a range of tasks to qualify for the daily living element (there is a mobility element that is not affected by the plans). Under the new rules people will need to score a minimum of four points in at least one activity to qualify.

However, the changes made by Sir Keir mean existing PIP claimants will now be exempted from the stricter new criteria.

Alterations to Universal Credit, another type of benefit, mean that the health top-up will only be cut and frozen for new applications, as opposed to existing ones.

Read more:
What are the concessions to the welfare bill – and will MPs back it?
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Mr Streeting declined to say whether he thought those who decide to vote against the bill should lose the party whip, which would force them to sit as an independent MP in the Commons.

He said it was “not my decision”, but added that there was an “expectation that Labour MPs vote for the whip”.

In a series of interviews over the weekend, the prime minister acknowledged there had been some mishandling of the welfare debate and said he was “heavily focused” on world affairs before he was forced to U-turn on his welfare bill.

In a piece in The Sunday Times, Sir Keir said he was occupied with the G7 and NATO summits and the escalating tensions in the Middle East for much of the past two weeks.

“Getting it right is more important than ploughing on with a package which doesn’t necessarily achieve the desired outcome,” he said, adding that all the decisions made were his and that “I take ownership of them”.

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