The biggest downward contribution to inflation in June came from clothing and footwear, according to the latest Consumer Price Index figures from the ONS.

As headline inflation remained at two per cent, prices across the clothing and footwear division declined by 1.2 per cent last month compared to an increase of 0.2 per cent during the same four-week period of 2023.

While prices jumped by 1.6 per cent in the year to June, this was lower than a rise of three per cent in the 12-months to May.

The decline in the annual rate was driven by the 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.

Three items making particularly strong downward contributions were women’s sportswear shorts, women’s exercise leggings and girl’s fashion tops.

Food prices also dropped from 1.7 per cent in May to 1.5 per cent the following month.

Kris Hamer, director of insight at the British Retail Consortium (BRC) said that households will benefit from falling inflation rates in retail.

Responding to the latest CPI inflation figures, which show headline inflation remaining at 2.0 per cent and food inflation falling 0.2 percentage points to 1.5%, , said:

"Falling energy prices and a stronger pound combined with fierce competition between retailers are helping to bring down prices for many goods, including essential items like pasta and margarine," explained Hamer. "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."

The insight director warned that while energy prices have fallen from their peak, the UK's reliance on imported energy remains a vulnerability for the market. He also said that the impact of climate change on harvests at home and abroad, as well as rising geopolitical tensions, could continue to increase commodity prices and translate into higher inflation in the future.

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