Inflation falls but food prices go up

Inflation fell unexpectedly last month, down to 4.2%, according to figures released by the Office of National Statistics (ONS).

Although core inflation (which excludes food and oil prices) slowed from 3.3% to 2.8%, the strongest upward pressure came from volatile energy and food prices.

Food prices increased by 0.9% between May and June this year, a large increase from the same time last year, with pressure coming from a wide range of products, including meat, bread and cereals, milk, cheese and eggs.

Analysts have warned that food prices were set to rise even further in the next few months and that consumers would continue to feel the squeeze.