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Falling fuel, milk, cheese and eggs prices have helped a surprise drop in inflation, while sugar, jam and syrups have pushed to keep costs high, according to the latest figures.

The rate of price rises has dropped to 7.9% in the year up to June, down from 8.7% last month.

Economists had predicted the CPI would only fall to 8.2%, but falling petrol and diesel costs, and a slowing down in food price rises, led to a larger-than-expected drop.

Inflation latest: Interest rate forecasts change sharply

Sky News looks at what is behind the figures – and what is keeping prices high.

Transport

The easing in the annual rate for transport was almost entirely because of changes in the price of motor fuels.

The cost of fuel fell by 22.7% in the year to June 2023, compared to a fall of 12.1% in May.

Average petrol and diesel prices stood at 143.0 and 145.7 pence per litre respectively in June 2023, compared with 184.0 and 192.4 pence per litre in June 2022.

Food

The rate of food inflation has fallen to 17.3% in June, down from 18.3% in May.

The largest reason for this drop came from milk, cheese and eggs prices, with the annual rate easing to 22.8% from 27.4% in May.

There were other, smaller downward effects from meat (mostly from pork products), and bread and cereals.

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‘We aim to halve inflation’

Inflation for these products has been high – and often a driver of price rises – because of the increased costs of production for dairy farmers. The costs of cattle, animal feed and farm labour have all risen in the past year, although this has eased in the last month, helping push inflation down.

But two small, partially offsetting upward effects came from sugar, jam, syrups, chocolate, and confectionery (particularly chocolate), and mineral waters, soft drinks, and juices.

This is in part because India, the world’s second-largest producer of sugar, is cutting export after rains hurt the sugar cane crop and the country diverts more sweeteners to biofuel.

Raw materials and factories

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 the ensuing energy crisis saw gas bills at record highs which pushed up costs across the economy. But as wholesale oil and gas prices ease, this has had a knock-on effect on inflation.

Furniture and household goods

The falling cost of raw materials has also seen this category down to 6.6% from 7.5% in May – the lowest recorded rate since November 2021.

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This was partly caused by a drop in prices from a wide range of lounge, bedroom, kitchen and dining room furniture.

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Israeli embassy ‘deeply disturbed’ by Bob Vylan’s ‘death to the IDF’ Glastonbury chant

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Israeli embassy 'deeply disturbed' by Bob Vylan's 'death to the IDF' Glastonbury chant

The Israeli embassy has said it’s “deeply disturbed” by chants of “death to the IDF” at Glastonbury – as police also investigate the incident.

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 who the prime minister said should be ditched from the line-up.

“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”.

Bob Vylan performing on the West Holts Stage. Pic: PA
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The BBC said some of the comments by Bob Vylan were ‘deeply offensive’. Pic: PA

The post on X added: “When such messages are delivered before tens of thousands of festivalgoers and met with applause, it raises serious concerns about the normalisation of extremist language and the glorification of violence.”

Avon and Somerset Police said they are looking at whether a criminal offence was committed.

“Video evidence will be assessed by officers to determine whether any offences may have been committed that would require a criminal investigation,” the force said in a post on social media.

Bob Vylan also performed in front of a screen quoting a claim that Israel’s actions in Gaza amount to genocide.

Culture Secretary Lisa Nandy has spoken to BBC boss Tim Davie for an “urgent explanation” about what due diligence it carried out into Bob Vylan.

Bob Vylan member on stage. Pic: PA
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Thousands watched the set on the West Holts stage. Pic: PA

A spokesman said the government strongly condemned the “threatening comments” by the group, whose X bio describes them as a “punk/rap/alt thing”.

A BBC statement said: “Some of the comments made during Bob Vylan’s set were deeply offensive.

“During this live stream on iPlayer, which reflected what was happening on stage, a warning was issued on screen about the very strong and discriminatory language.

“We have no plans to make the performance available on demand.”

Tory leader Kemi Badenoch re-posted a clip of the incident and called it “grotesque”.

“Violence against Jews isn’t edgy. The West is playing with fire if we allow this sort of behaviour to go unchecked,” she said on X.

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A statement from Glastonbury Festival said it “does not condone hate speech or incitement to violence of any kind from its performers”.

DJ Provai of Kneecap. Pic: Reuters
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Kneecap also performed – with the BBC not showing them live. Pic: Reuters

Irish group Kneecap followed Bob Vylan – with the broadcaster not carrying their performance live amid concern over what they might do or say.

However, it’s understood their show will be made available on demand after a review.

One of its members, Liam Og O hAnnaidh, was charged with a terror offence in May after being accused of displaying a flag in support of proscribed terror group Hezbollah at a gig.

Mo Chara of Kneecap at Glastonbury. Pic: Reuters
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Pic: Reuters

Crowd and flags at Glastonbury. Pic: Reuters
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There were Palestinian flags among the crowd for Kneecap’s show. Pic: Reuters

Bandmate Naoise O Caireallain told the packed Glastonbury crowd they should “start a riot outside the courts”, before clarifying: “No riots just love and support, and support for Palestine.”

O hAnnaidh – also known as Mo Chara – wore a Palestinian keffiyeh scarf for Saturday’s set and told fans he was a “free man”.

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Girl, 7, dies after tree collapses at park in Southend

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Girl, 7, dies after tree collapses at park in Southend

One girl has died and another is in a critical condition after a tree partially collapsed at a park in Essex.

The girls, aged seven and six, suffered serious injuries when they were among a number of children caught beneath the tree at Chalkwell Park in Southend.

Essex Police confirmed the seven-year-old girl died in hospital and her family is receiving support from specialist officers.

Three other children suffered minor injuries following the incident.

An East of England Ambulance Service spokesperson said: “We were called at 2.55pm to reports that a tree had fallen in Chalkwell Park in Chalkwell.

“Six ambulances, three ambulance officer vehicles, the London Air Ambulance and Kent Air Ambulance were sent to the scene.”

Map showing the location of Chalkwell Park in Essex

Police said an investigation is continuing into what caused the tree to collapse.

‘Unimaginable hardship’ for families

Chief Superintendent Leighton Hammett said: “Families are facing unimaginable hardship this evening and all of our thoughts are with them at this time.

“I cannot begin to put into words how difficult today’s events have been, and continue to be, for them.

“It’s also not lost on me how traumatic it must have been for the members of the public who witnessed this awful incident.

“Across a matter of moments, many of them went from enjoying the warm summer weather to rushing to the aid of strangers without a second thought.”

Chief Sup Hammett also paid tribute to police, ambulance and fire crews who “did all they could,” adding that “today’s loss is one they will all take personally”.

Death is ‘truly devastating’

Local MP David Burton-Sampson said: “The news of the sad death of one of the children involved in the incident at Chalkwell Park today is truly devastating.

“I am sure I reflect the thoughts of all our residents here in Southend in sending my deepest condolences to the child’s family and friends.

“My thoughts are also with the other children injured and I wish them a full and speedy recovery.

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Hundreds of NHS quangos to be axed – as plans unveiled for health funding to be linked to patient feedback

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Hundreds of NHS quangos to be axed - as plans unveiled for health funding to be linked to patient feedback

NHS funding could be linked to patient feedback under new plans, with poorly performing services that “don’t listen” penalised with less money.

As part of the “10 Year Health Plan” to be unveiled next week, a new scheme will be trialled that will see patients asked to rate the service they received – and if they feel it should get a funding boost or not.

It will be introduced first for services that have a track record of very poor performance and where there is evidence of patients “not being listened to”, the government said.

This will create a “powerful incentive for services to listen to feedback and improve patients’ experience”, it added.

Sky News understands that it will not mean bonuses or pay increases for the best performing staff.

NHS payment mechanisms will also be reformed to reward services that keep patients out of hospital as part of a new ‘Year of Care Payments’ initiative and the government’s wider plan for change.

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Speaking to The Times, chief executive of the NHS Confederation Matthew Taylor expressed concerns about the trial.

He told the newspaper: “Patient experience is determined by far more than their individual interaction with the clinician and so, unless this is very carefully designed and evaluated, there is a risk that providers could be penalised for more systemic issues, such as constraints around staffing or estates, that are beyond their immediate control to fix.”

He said that NHS leaders would be keen to “understand more about the proposal”, because elements were “concerning”.

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Health Secretary Wes Streeting said: “We will reward great patient care, so patient experience and clinical excellence are met with extra cash. These reforms are key to keeping people healthy and out of hospital, and to making the NHS sustainable for the long-term as part of the Plan for Change.”

In the raft of announcements in the 10 Year Health Plan, the government has said 201 bodies responsible for overseeing and running parts of the NHS in England – known as quangos – will be scrapped.

These include Healthwatch England, set up in 2012 to speak out on behalf of NHS and social care patients, the National Guardian’s Office, created in 2015 to support NHS whistleblowers, and the Health Services Safety Investigations Body (HSSIB).

The head of the Royal College of Nursing described the move as “so unsafe for patients right now”.

Professor Nicola Ranger said: “Today, in hospitals across the NHS, we know one nurse can be left caring for 10, 15 or more patients at a time. It’s not safe. It’s not effective. And it’s not acceptable.

“For these proposed changes to be effective, government must take ownership of the real issue, the staffing crisis on our wards, and not just shuffle people into new roles. Protecting patients has to be the priority and not just a drive for efficiency.”

Elsewhere, the new head of NHS England Sir Jim Mackey said key parts of the NHS appear “built to keep the public away because it’s an inconvenience”.

“We’ve made it really hard, and we’ve probably all been on the end of it,” he told the Daily Telegraph.

“The ward clerk only works nine to five, or they’re busy doing other stuff; the GP practice scrambles every morning.”

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