There is one bit of good news about the cost of living crisis

Stop the press - we finally have some good news about the cost of living crisis.

Inflation has been one of the biggest struggles during the crisis with the cost of a supermarket basket going through the roof.

But it fell further than expected in June to 7.9 per cent, down from 8.7 per cent in May, amid a sharp fall in petrol prices, which in turn has eased forecasts for how much the Bank of England will need to raise interest rates over the coming year.

City forecasts had expected a decline to 8.2 per cent.

This means inflation is now at its lowest for more than a year, after several months of being stuck around the same level

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Let's not be too happy, inflation is still very high. Indeed, UK inflation remains the highest among the G7 group of advanced economies, and financial markets widely expect the Bank to drive up borrowing costs further at its next policymaking meeting in August.

But we will take any good news we can in this economy.

Rishi Sunak said:

The chancellor, Jeremy Hunt, said: “Inflation is falling and stands at its lowest level since last March; but we aren’t complacent and know that high prices are still a huge worry for families and businesses.

“The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this year.”

“Inflation has been persistently high and remains higher than our international peers. This is becoming a hallmark of Tory economic failure,” said Rachel Reeves, the shadow chancellor.

“Today’s numbers confirm what families across the country already know – that prices are still going up at staggering rates and that they’re bearing the brunt of those costs.”

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