Price drop pushes down inflation

Cheaper food and furniture in the summer sales produced a sharp cut in inflation. In July, the Retail Prices Index (RPI) rose by 3.8% — down from 4.4% the previous month.

Meanwhile, inflation under the Consumer Prices Index (CPI), which excludes housing costs and is the government’s preferred measure, fell to 1.9% in July — down from 2.4% in June. The downward influences were similar to those for the RPI.