Affected by falling gasoline and food prices, the UK's inflation rate fell to its lowest point in more than a year, giving people a chance to take a break. However, as the situation in the Middle East is once again tense and pushes up energy prices, this easing may only be short-lived. The UK Office for National Statistics announced on Wednesday that consumer prices in the UK rose 2.6% year on year in June, down from 2.8% in the previous month, the lowest level since March last year. This figure is also lower than the economists' average estimate of 2.7%, and is the third month in a row that it has fallen short of expectations. Last month, as market expectations for an end to the US-Iran conflict heated up, crude oil prices fell sharply, and gasoline and diesel prices fell 3.1%. Furthermore, food inflation fell to its lowest level since 2024, and drastic discounts and promotions in the apparel industry are also putting downward pressure on overall inflation. The service sector inflation rate, an indicator of domestic pressure closely watched by the Bank of England, fell from 3.7% to 3.6%, slightly higher than expected.

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