Cooling Inflation Rates Mask a Brewing Storm The news that inflation rates may have cooled in June comes as welcome relief to many. Economists predict a 2. 7% Consumer Prices Index (CPI) rate, down from 2. 8% in May.
However, this temporary reprieve conceals a more complex and concerning picture. A sharp decline in petrol and diesel prices is driving the expected inflation drop.
The average price of a litre of diesel fell by over 16p at UK forecourts due to the interim ceasefire agreement between the US and Iran, which prompted oil prices to plummet below pre crisis levels.