ONS data showed CPI rose 2.6% YoY in the 12 months to June, down from 2.8% and below the 2.7% economists' consensus. A sharp drop in oil on expectations of a resolution to the US‑Iran conflict pushed petrol and diesel prices lower; food and non‑alcoholic beverage costs also weighed. Services inflation, the Bank of England's key domestic gauge, slowed to 3.6% from 3.7%, slightly above forecasts. The relief may be temporary: the energy price cap is due to rise about 13% in July, which could nudge

ONS data showed CPI rose 2.6% YoY in the 12 months to June, down from 2.8% and below the 2.7% economists' consensus. A sharp drop in oil on expectations of a resolution to the US‑Iran conflict pushed petrol and diesel prices lower; food and non‑alcoholic beverage costs also weighed. Services inflation, the Bank of England's key domestic gauge, slowed to 3.6% from 3.7%, slightly above forecasts. The relief may be temporary: the energy price cap is due to rise about 13% in July, which could nudge headline inflation back up. Markets largely expect the Bank of England to hold rates next week as it balances energy‑driven upside risk against a weak labour market and soft growth.