LONDON, July 22 (Xinhua) -- Britain's consumer price index (CPI) rose 2.6 percent year-on-year in June, down from 2.8 percent in May, data released by the Office for National Statistics (ONS) showed on Wednesday.
A decline in motor fuel prices, particularly diesel, helped ease inflation, said Grant Fitzner, chief economist at the ONS. Food prices fell during the month, while clothing prices also declined as summer sales brought steeper discounts than a year earlier, he added.
Despite the slowdown, analysts said inflationary pressures remained. Martin Sartorius, lead economist at the Confederation of British Industry (CBI), said inflation could pick up in the coming months as the Middle East conflict continues to push up energy costs, with some of the increases likely to feed through to domestic prices.
Harvir Dhillon, lead economist at the British Retail Consortium, said the drop in food inflation was largely driven by intense competition among supermarkets despite ongoing supply chain pressures.
Stuart Morrison, research manager at the British Chambers of Commerce (BCC), said businesses continued to face mounting cost pressures, with inflation remaining their top concern in the chamber's latest survey. He warned that without greater relief from rising costs, economic growth would remain fragile. ■
