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Inflation falls unexpectedly as oil costs sink

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The rate of inflation fell unexpectedly to 2.6% in June from 2.9% the previous month, led by lower oil prices.

The figures, from the Office for National Statistics (ONS), are significant as they show not only an easing in the squeeze on living costs but also take pressure off the Bank of England to raise interest rates to combat rising prices.
The pound fell half a cent against the dollar in response – taking sterling to $1.3028. Its recent strengthening has been partly down to increased expectations of a hike in Bank rate.

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Source: SKY