UK inflation retreats to zero in June

The Consumer Price Index dropped to zero in June, reversing May’s 0.1 per cent rise
The Consumer Price Index dropped to zero in June, reversing May’s 0.1 per cent rise
PA

Inflation has dropped back towards its lowest rate in more than 50 years, as summer fashion sales and the supermarkets’ food price war took its toll on prices.

The Consumer Price Index dropped to zero in June, reversing May’s 0.1 per cent rise and drifting back towards April’s 0.1 per cent decline - the first negative reading since 1960.

The reading is good news for families as prices stay flat at a time when wage levels are expected to continue rising. They are expected to be up by 3.3 per cent when official figures are released next week.

Shops starting their summer sales and a fall in food prices erased the inflationary gain made in May, while smaller rises in air fares compared to a