The rate of inflation in the UK went down to 1.6% in July.
Prices for food, clothing and shoes provided the biggest spur to falling price tags and stores put on summer sales with greater discounts than last year, according to the Office for National Statistics.
The food price war taking place between the UK’s supermarkets has brought prices down. In May Britain experienced the first annual food price drop in more than eight years.
The largest fall was in the cost of vegetables. There was no change in the cost of meat, but fish prices shot up by 5.6% over the past year.
The costs of other goods and some services, however, have gone up. Energy prices have continued to rise, bringing gas and electricity increases on bills by an average of 4.7% over the last year.
Rail fares are projected to jump by 3.5% next year.
Average earnings failed to catch up with price rises, remaining well below them even with the drop in inflation.
The inflation rate has been below the Bank of England’s target of 2% for the past eight months in a row.
