Lower fuel prices slow pace of UK inflation

CPI drop to 2.6% provides some relief for cash-strapped consumers, but concern grows over living standards squeeze

Inflation fell unexpectedly in June for the first time in nine months as lower fuel prices provided some respite for cash-strapped consumers.

The consumer prices index fell to 2.6% from a four-year high of 2.9% in May according to the Office for National Statistics. Economists had expected the rate to be unchanged.