According to the Consumer Price Index (CPI) inflation fell 0.3% in June from 4.5% the previous month to 4.2% in June.

Experts had expected inflation to remain the same however clothing dropped 1.9% compared to May while toys and games also fell.

The retreat in consumer price inflation in June boosts the case for the Bank of England to hold fire on interest rates for many more months to come to give the fragile, faltering economy every chance to develop growth momentum,” said Howard Archer, economist at IHS Global Insight.