The October 2022 peak was the highest rate in over 40 years. The annual rate in June this year has not been lower since April 2021, when it was 1.5 per cent, an ONS release said.

On a monthly basis, CPI rose by 0.1 per cent in June, the same rate as in the same month last year.

The largest upward contribution to the monthly change in CPI annual rates came from restaurants and hotels, whereas the largest downward contribution came from clothing and footwear, with prices of garments falling this year having risen a year ago.

Prices in the clothing and footwear sector rose by 1.6 per cent in the year to June 2024, compared with a rise of 3 per cent in the year to May. On a monthly basis, prices in the sector fell by 1.2 per cent this year, compared with a 0.2 per cent rise a year ago.

The fall in the annual rate was the result of downward effects from garments for women, garments for children, footwear for women and garments for men. Prices in all of these categories apart from garments for children saw price falls in June 2024 coupled with a rise in the monthly price in June 2023.

Monthly prices for garments for children fell in June this year at a greater rate than the fall in June 2023.

Three items making particularly strong downward contributions were women’s sportswear shorts, women’s exercise leggings and girl’s fashion tops. These items saw strong double digit monthly growth in June 2023 compared to price falls in June 2024.

Core CPI (excluding energy, food, alcohol and tobacco) rose by 3.5 per cent in the 12 months to June, the same as in May. The CPI goods annual rate fell from minus 1.3 per cent to minus 1.4 per cent.

"While we should celebrate the end of high inflation, which has dogged the UK for two years, many of the factors that caused it lurk in the background. Energy prices have fallen from peak, but the UK's reliance on imported energy remains a vulnerability. Similarly, the impact of climate change on harvests at home and abroad, as well as rising geopolitical tensions, could increase commodity prices and translate into higher inflation in the future," Kris Hamer, director of insight at the British Retail Consortium, said in a release.

Fibre2Fashion News Desk (DS)