Commenting on the figures, Danske Bank Economist Conor Lambe said:
“The CPI inflation rate in the UK was 2.6 per cent in June 2017, lower than the 2.9 per cent observed in May. This fall was mainly due to lower fuel prices.
“The latest labour market data showed that the rate of nominal wage growth over the year to March-May 2017 was 2 per cent. Therefore, despite today’s fall in the inflation rate, real wage growth is still in negative territory.
“Above target inflation, and the accompanying negative real wage growth, is continuing to squeeze UK consumers and this is likely to be reflected in next week’s preliminary estimate of GDP growth in the second quarter of this year.”
This comment was published in response to the June 2017 UK inflation data published by the ONS on 18th July 2017.