The Retail Prices Index [RPI], which includes housing costs also fell to 2.8% from 3.1% a month earlier.

Lower food, clothing and fuel prices are responsible although the latter is largely due to the slowing economy reducing demand and lower clothing costs are probably due to retailers starting their summer sales earlier in an effort to get summer fashions off the shelves. Alcohol and transport costs were also down by 0.5%. .

UK unemployment fell to 2.58m [8.1%]; a reduction of65,000 people in the three months to May while the number of people in employment rose by 181,000 to 29.35 million.

In Brighton & Hove unemployment [JSA Claimant count] is the lowest for six months at 6,296 representing an 11% decrease over the past year.