The cost of living in Britain rose at slower rate in June, but is still rising faster than wages, official figures have shown.

Nick Leung, research analyst at fund manager WisdomTree, says there are three reasons inflation dropped last month:

“Today’s inflation reading is slightly softer than expected, underpinned by a combination of oil price weakness, a stabilising pound and import-cost induced inflationary pressures undermining consumers’ debt-fuelled spending power.”