UK inflation slowed to 2.6% in the 12 months to June, down from 2.8% in May and marking its lowest annual reading in 15 months. The latest figures from the Office for National Statistics came in slightly below economists' expectations and extended the recent run of easing price pressures.
The decline was helped by lower costs for motor fuel, food and clothing, according to the report. Those categories gave households some breathing room after a prolonged period of elevated living costs, with the overall pace of price growth continuing to cool.
Even so, the improvement may prove short-lived. The latest drop in inflation offers temporary relief for consumers, but concerns remain that higher energy costs could push pressure back onto household budgets in the months ahead.
For policymakers and markets, the June data adds to evidence that inflation is moving in a more favorable direction. Still, with price pressures not fully gone and future energy bills in focus, the outlook for UK consumers remains mixed despite the latest slowdown.
