Inflation growth eased to 2.8% in July, down from 2.9% in June, as price drops across air fares and summer Sales across clothing and footwear kept prices down.

According to the Office for National Statistics (ONS) the Consumer Prices Index showed clothing and footwear prices fell 3.2% in July as retailers cut prices for their summer promotions. It was a larger drop than this time llast year when prices fell 2.6%, although the ONS said this was “unusually small”.

In addition air fares, most notably for long haul flights, provided a large downwards movement on inflation. But this was partially offset by price rises across petrol and diesel which grew by an average of 0.7p and 0.4p a litre.

Price falls across the recreation and culture category also helped to push prices down.  

The wider inflation figures also confirmed that commuters face a 4.1% surge in regulated rail fares next year, putting further pressure on discretionary spending.

Regulated train fares are pegged to the RPI inflation measure, plus 1%. The RPI index dipped to 3.1% in July, from 3.3% in June.

 

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