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Inflation dips to 2.4% in June

Clothing and footwear were major contributors to the latest fall in inflation as it dipped to 2.4% in June from 2.8% in May, according to the Office of National Statistics.

The clothing and footwear category saw prices fall by 4.2% as retailers started Sales earlier than usual to combat the dreary summer weather.  However, a surge in football shirts on the back of Euro 2012 and UEFA Champions League tournaments helped redress the balance, pushing inflation upwards.

It is the third consecutive month that inflation has fallen and the dip is the largest on record between these two months, since the CPI was launched in 1996.

Conlumino managing director Neil Saunders said: “The unseasonal weather has meant many apparel retailers have been more promotionally driven to shift stock.”

He added: “Looking ahead, we do expect further downward movement in inflation. However, depleted retail margins, commodity cost pressure and the interest rate environment are all guarding against major declines in prices.”

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