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Inflation falls to 7.9% in bigger than expected drop

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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 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, remained static.

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

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