Back to zero inflation: falling food and clothing prices drag rate back to 0%

Pressure loosens on Bank of England to raise rates as summer clothing discounts and supermarket price war cuts index

Summer clothing discounts pulled UK inflation back down to zero last month, bringing more relief to households and taking pressure off the Bank of England to raise interest rates any time soon.

Official figures showed inflation on the consumer price index (CPI) measure dipped to zero in June, from 0.1% in May. That was in line with the consensus forecast in a poll of economists by Reuters, although some had predicted prices could be down on a year earlier and mark a return to the negative inflation recorded in April.