UK CPI inflation down to 1.8%

UK inflation dropped below the Bank of England's target of 2% in June for the first time in almost two years, official statistics show.

The Consumer Prices Index (CPI) fell to 1.8% from 2.2% in May, according to figures from the Office for National Statistics (ONS). The Retail Prices Index (RPI), a measure of inflation which includes mortgage interest payments, slowed to -1.6% from -1.1%. The falling price of meat, bread and vegetables as supermarkets fight to compete for cash-strapped consumers helped to push inflation lower. Petrol and furniture prices rising by less than the same period last year also helped. Some of these factors were partially offset by a small rise in the price of computer games and audio-...