Inflation Eases As Clothing Costs Fall

Falling air fare and clothing costs have contributed to a slight easing in the headline rate of inflation.

The CPI measure stood at an annual rate of 2.8% in July, according to the Office for National Statistics (ONS), down from 2.9% the previous month.

The ONS said that discounting by fashion retailers and the lower air fares offset higher prices at the fuel pumps.

The wider inflation figures also confirmed that commuters face a 4.1% surge in regulated rail fares next year.

The RPI measure, which dipped to 3.1% in July from 3.3% in June, means passengers face the sharp rise in ticket prices from January because regulated fares are pegged to the index in July - plus 1% - under the Treasury's current formula.

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