UK inflation fell by more than expected in June to 2.6%, giving a boost to new Prime Minister Andy Burnham's plans to reduce the cost of living.
Key facts
- UK annual inflation fell to 2.6% in June.
- The Guardian reported the drop was larger than expected; the BBC said economists had anticipated a slight fall.
- The figure is seen as a boost for Prime Minister Andy Burnham's cost of living plans.
- Burnham has announced a winter VAT holiday on electricity bills.
- He has also pledged to lower the national cap on bus fares.
UK inflation fell to 2.6% in June, according to figures reported by the BBC and the Guardian. The Guardian said the drop was larger than expected, while the BBC noted that economists had anticipated inflation would fall slightly.
The decline in the annual June figure has been presented as a boost for new Prime Minister Andy Burnham, who has pledged to reduce the cost of living for UK households.
According to the Guardian, Burnham has said he wants to bring down the cost of living to give households more disposable income and improve the outlook for the economy.
Among the measures the prime minister has announced is a winter VAT holiday on electricity bills, aimed at easing pressure on household energy costs during the colder months.
The Guardian also reported that Burnham has pledged to lower the national cap on bus fares, part of his broader plan to reduce pressure on households.
The latest inflation reading arrives shortly after the new prime minister set out his commitments on the cost of living and the economy, making the figure an early indicator watched closely by his government.
Why it matters
Inflation directly affects how far households' money stretches, so a lower rate can ease pressure on family budgets. The figure also serves as an early test of the new prime minister's economic agenda and his pledges to reduce the cost of living.
Frequently asked questions
What is the current UK inflation rate?
UK annual inflation fell to 2.6% in June, according to figures reported by the BBC and the Guardian.
Was the fall in inflation expected?
The BBC reported that economists had expected inflation to fall slightly, while the Guardian said the drop was by more than expected.
What has Andy Burnham pledged on the cost of living?
According to the Guardian, Burnham has pledged to bring down the cost of living, announcing a winter VAT holiday on electricity bills and a lower national cap on bus fares.