Reeves cutting pensioners' winter fuel payments forced our hand, SNP claims (2024)

We are going to leave this blog here for today; here’s a recap of what has been happening:

• Inflation has risen back above the Bank of England’s 2 per cent target, in the first increase of 2024 after months of steady declines. The Office for National Statistics (ONS) said Consumer Prices Index inflation rose to 2.2 per cent in July, up from 2 per cent in June.
• Darren Jones, Chief Secretary to the Treasury, said: “The new Government is under no illusion as to the scale of the challenge we have inherited, with many families still struggling with the cost of living.”
• Shadow ChancellorJeremy Huntsaid Wednesday’s inflation figures showed more needed to be done to keep prices under control. “The Chancellor must not use this data as an excuse to break her promises and hike up taxes – tax rises she had planned all along,” he added.
• The cost of the cheapest groceries jumped more sharply than more premium brands as poorer households came under increased pressure during the cost of living crisis, according to research.
• Average UK house prices increased by 2.7 per cent to £288,000 in the 12 months to June 2024, according to ONS.
• The rate at which house prices were rising in the UK steadied in June, while tenants continued to be squeezed by soaring rents, according to new official figures.

• Universal winter fuel paymentswill be scrapped for pensioners in Scotland, the Scottish Government has announced.
• TheSNPadministration blamed the UK Government for the move, saying it had no “choice” but to followthe cuts announced by Labour Chancellor Rachel Reeves.
• The annual benefit previously given to all pensioners, worth up to £300 a year, will now be means-tested so it is made available to only the most vulnerable older people.
• The Scottish Government will make sure public services do not “crumble away”, the Finance Secretary has said, but she warned of “tough decisions” ahead.

• A banner proclaiming “I crashed the economy” featuring a picture of a lettuce forcedLiz Trussfrom the stage at an event in Suffolk on Tuesday night.
• Speaking at Beccles Public Hall and Theatre to promote her bookTen Years to Save the West, the former prime minister was discussing her support forDonald Trumpwhen the banner unfurled behind her.
• Once Ms Truss noticed the sign, which political campaign group Led By Donkeys took credit for, she said, “That’s not funny”, before picking up her papers and leaving the stage to a smattering of applause.
• Today, the former prime minister tweeted: “What happened last night was not funny. Far-left activists disrupted the event, which then had to be stopped for security reasons. This is done to intimidate people and suppress free speech. I won’t stand for it. Would we see the same reaction if the activists were far right?”

by John Elledge

Recall for a moment your worst-ever professional failure. Remember the creeping dread as you realised what you’d done, the looks on the faces of your colleagues, the inescapable knowledge there was nobody else to blame. I’m sure it felt horrendous. And given embarrassment is an emotion whose power does not fade with time, I apologise for bringing it all back. But there is some comfort in the likelihood no one else has even thought about it in years. They’re certainly not going around reminding everyone, the minute you set foot in public.

With all that in mind, then, imagine how it must feel to beLiz Truss. At an event on Tuesday night, she was interrupted by laughter, and turned to find, behind her, a banner featuring afamiliar salad vegetable with googly eyes, and the caption “I crashed the economy”. The lettuce, of course, was made famous by theDaily Star, which predicted – correctly – it would outlast the Truss premiership, and set up a livestream so you could watch it rot. The banner was the work of campaigners Led By Donkeys.

Theex-PM was not amused, storming off the stage muttering, “that’s not funny.” Citation, I fear, needed, but you can understand her irritation. Truss’s premiership was a small part of a long political career – it lasted two months, two years ago. All she wants is to explain her plan toSave the West. The West, alas, won’t let her.

Read more here.

Former chancellor Kwasi Kwarteng has said that Liz Truss “doesn’t read the room” and is an “unusual person”.

Asked by The News Agents podcast if Ms Truss has “come to terms with” the calamitous” mini-Budget, he said: “I don’t know. I think that there are people who react to things, big setbacks, big crises, and it’s very difficult for them to try and be objective.

“But you can try and take a step back and look at what happened, and try and look at yourself objectively even though you can’t fully do that.

“I think other people will respond and say ‘no, I was right, I was always right’. You double down. Effectively, that’s the Trump method. I’m not sure what Liz is thinking right now.”

He said he is in touch with her “occasionally,” but “of course now she’s been travelling, she’s been doing speeches.”

Ms Kwarteng added that he thinks it takes “great strength of character to get to the top, to get to where she did.

“I think she’s unusual, I think she’s someone who’s got tremendous determination, tremendous drive, tremendous sense of urgency.”

He said it was an “open question” as to whether the former prime minister has emotional intelligence, adding: “She doesn’t read the room. She’s pretty much said that. She’s not a great presenter and like all of us, she’s got strengths and weaknesses, but I think she’s got great insight and great determination.

“My view on what happened to her is that at the time it seemed like a total disaster. I think as time passes, if she hadn’t really said very much I think people would be more inclined to listen to what she’d said.”

Rentshave risen nearly four times the rate ofinflationas shortages of properties in the face of growing tenant demand drives up prices.

Average rents increased by 8.6 per cent in the year to July 2024, unchanged from the June reading and close to therecord-high annual rise of 9.2 per centin March,the Office for National Statistics(ONS) said.

In England,London was the region with the highest rent inflationin the 12 months to July, at 9.7 per cent, unchanged from the previous month. North-east England saw the lowest increases (6.1 per cent), over the same period.

Tenants in Bournemouth in Dorset were experiencing the highest rent-to-income ratio with the average tenant spending 46.9 per cent of their salary on rent. Tenants in Brighton (46.3 per cent) and London (44.3 per cent) also spend a large portion of their salary on rent. Edinburgh (40.6 per cent) also features in the top five list of the most unaffordable cities for renters. Within the top 10, theonly city in the North of England was Manchester.

By comparison, Sunderland (32.8 per cent) and Newcastle upon Tyne (33.7 per cent) in the North East of England were among the most affordable sites for renters. Others include Belfast (33.1 per cent), Hull ( 34 per cent) and Derby (35.2 per cent).

For further details and a map of rent rises by area, click here.

More three in every five Britons say that they do not personally care very much or at all who the next Tory leader is, including 36 per cent of Conservative voters, a new poll from Ipsos suggests.

The survey, taken between 2 and 5 August, saw James Cleverly emerge as the most popular candidate, but only just, with 18 per cent of respondents believing he would do a good job, compared to 17 per cent for Dame Priti Patel and Tom Tugendhat.

However, some 44 per cent of participants thought Dame Priti would do a bad job, giving her a net approval rating of -27, the lowest of all the candidates.

Mr Tugendhat is the favourite candidate among Remain voters, 21 per cent of which would opt for him, while Dame Priti is the most popular choice among Leave voters, 27 of which think she would perform well.

Among Conservative voters, Mr Cleverly is still the most popular, with 31 per cent of people saying they would go for him, compared to 30 per cent for Dame Priti. Tom Tugendhat and Robert Jenrick follow closely behind, with 27 per cent each saying they would do a good job.

However, overall, one in four people said that they did not know who they would prefer to be the next Tory leader, and 34 per cent said that none of the current candidates appeal to them.

Some 62 per cent said that they do not care much or at all who wins the contest.

Angela Rayner hails a “new era of partnership” after a landmark meeting between the Government, businesses and trade unions on Wednesday.

The meeting, hosted by the Deputy Prime Minister and the Business Secretary, Jonathan Reynolds, follows Labour’s manifesto commitment to work with businesses and trade unions in an effort to kickstart economic growth.

Top of the agenda were the Government’s proposed Employment Rights Bill, which is expected to include bans on “exploitative” zero hours contracts and the practice of “fire and rehire”, and introduce rights to parental leave and sick pay from day one of employment.

Attendees included the Trades Union Congress and major unions such as Unite, Unison and the GMB, along with business groups such as the CBI, the British Chambers of Commerce and the Federation of Small Businesses.

TUC general secretary Paul Nowak said described the meeting as “an important chance for unions and businesses to discuss the shared gains that the Government’s reforms will bring”.

He added: “Together, we can raise the floor so that every job has the pay and security that families need to thrive, workers have access to unions, and good employers are not undercut by the bad.”

CBI policy chief John Foster said the meeting was “a welcome step” in beginning “constructive dialogue” on the Government’s plans.

In opposition, some accused Labour of “watering down” its employment rights proposals after consulting with businesses, while the Conservatives said the reforms would harm the economy.

Concerns from some businesses about the impact of proposed changes remain, with FSB policy chair Tina McKenzie saying it would be “crucial” for the Government to “try and reduce harm to employment, small businesses and the economy from any and every negative impact of these proposals”.

Both Mr Foster and Jonathan Geldart, director general of the Institute of Directors, said consultation would be vital to avoid Labour’s proposals having “unintended consequences”.

In its manifesto, Labour committed to consulting “fully” with businesses, workers and civil society on how to implement its plans.

Former prime minister Liz Truss has tweeted following a stunt which saw a banner proclaiming “I crashed the economy,” and including a picture of a lettuce, unfurled at an event at which she was speaking in Suffolk on Tuesday.

Speaking at Beccles Public Hall and Theatre to promote her book Ten Years to Save the West, the former prime minister was discussing her support for Donald Trump when the banner unfurled behind her.

Once Ms Truss noticed the sign, which political campaign group Led By Donkeys took credit for, she said “that’s not funny” before picking up her papers and leaving the stage to a smattering of applause.

Ms Truss has now posted on X, saying: “What happened last night was not funny. Far-left activists disrupted the event, which then had to be stopped for security reasons.

“This is done to intimidate people and suppress free speech. I won’t stand for it.

“Would we see the same reaction if the activists were far-right?”

Read more here.

Inflation rose slightly to 2.2 per cent in July, marking the first rise this year.

Many items are still seeing much bigger increases although others are actually falling in cost. Here,iexamines thelatest inflation datato reveal which products are facing the highest rises – and the largest discounts.

Alcohol and tobacco

Alcohol and tobacco prices rose faster than most other goods’, with the rate of inflation still high at 7.2 per cent in July, though down slightly from 7.3 per cent in June.

Food and non-alcoholic beverages

Inflation for food and drink,excluding alcohol, remained stable at 1.5 per cent for July, meaning it is also getting more expensive, but only very slowly.

Kris Hamer, directorof insight of the British Retail Consortium (BRC), said: “Food inflationwas unchanged, after falling for the preceding 15 months, as increasing commodity costs over 2024began to filter into prices.”

Housing andhousehold service

When it comes to housing, water, electricity, gas, and other fuels, it’s a little more complicated.

Annually, housing and household services prices rose by 3.7 per cent in July 2024, up from 2.3 per cent in the year to June.

However, gas and electricity prices fell by 7.8 per cent and 6.8 per cent respectively last month.

Keep reading here.

Angela Rayner and Jonathan Reynolds agreed to “wipe the slate clean” with trade unions and business leaders as they met stakeholders to discuss the Government’s planned expansion of workers’ rights, the Department for Business and Trade has said.

The Deputy Prime Minister and Business Secretary held talks with senior representatives from the TUC, CBI, Unison, Unite and the British Chambers of Commerce on Wednesday over Labour’s “Plan to Make Work Pay”.

The plan includes measures to ban “exploitative” zero-hours contracts, end fire and rehire and create a new watchdog to ensure employment rights are upheld.

Ms Rayner said: “Our plan to Make Work Pay will bring together workers and businesses, both big and small and across different industries, for the good of the economy. This first-of-its-kind meeting has kicked off a new era of partnership that will bring benefits to everyone across the country striving to build a better life.”

Mr Reynolds said: “For too long the valuable insights of business and trade unions have been ignored by Government, even on past decisions which have directly impacted them.

“Business and workers will always help to shape the ambitions of government including our plan to Make Work Pay, to ensure it boosts economic growth and creates better working conditions for all”.

Mortgage rates could fall to 3.5 per cent by the end of 2024 will come as goodnews for homeowners, experts predict, following a series of reductions from major lenders.

Despite inflation increasing slightly on Wednesday, economists said the lower-than-expected reading raises the prospect of “multiple” interest rate cuts this year, with brokers tellingithis is likely to lead to even bigger mortgage rate cuts.

Cheaper fixed rates would mean households buying homes or remortgaging from this autumn will face lower monthly bills than they otherwise would have, which will come as good news to Chancellor Rachel Reeves as she prepares for her first Budget.

Aaron Strutt, of brokers Trinity Financial, said: “If the base rate came down by another 0.5 per cent it would be pretty reasonable to expect fixed deals to reduce even more. The cheapest five-year fixes could be around 3.5 per cent which would revive the property market and make mortgages more affordable.”

Nick Mendes of John Charcol brokers added: “Markets are now anticipating that the Monetary Policy Committee (MPC), will make a further 50 basis point reduction by the end of 2024. Previously, I thought rates could reach 3.5 per cent by early next year, but now I think we could see rates falling to that this year.”

Read the full story here.

The news story regarding the Conservative Party that most stuck in people’s minds over the general election campaign was the election betting scandal, a new YouGov poll suggests.

Some 14 per cent of respondents said that this was the story they heard about the most, followed by Rishi Sunak leaving the D-Day commemorations early (8 per cent) and then news on immigration policy (6 per cent).

Meanwhile, 19 per cent of people said that no one story stood out and a further 19 per cent said that they did not know or that they had avoided the news.

For Labour, the most remembered story was the Tory claim that Sir Keir Starmer’s party would raise taxes, but this was only pointed out by 7 per cent of respondents.

For Reform UK, the story that stood out most of all for the survey participants was the news that Nigel Farage would be standing as a candidate in Clacton, and would take over as party leader, which came partway through the campaign.

For the Lib Dems, the most heard-about story was far and away the images and references to leader Sir Ed Davey’s publicity stunts, which included paddleboarding, bungee jumping and wheelbarrow racing. Some 37 per cent of all respondents and 52 per cent of Lib Dem voters remembered this most clearly, compared to percentages in the low single figures for party policies.

A banner proclaiming “I crashed the economy” featuring a picture of a lettuce forced Liz Truss from the stage at an event in Suffolk on Tuesday night.

Speaking at Beccles Public Hall and Theatre to promote her book Ten Years to Save the West, the former prime minister was discussing her support for Donald Trump when the banner unfurled behind her.

Once Ms Truss noticed the sign, which political campaign group Led By Donkeys took credit for, she said, “That’s not funny”, before picking up her papers and leaving the stage to a smattering of applause.

Led By Donkeys confirmed the event was genuine, but refused to explain how they pulled the stunt off.

Ben Stewart, co-founder of Led By Donkeys, who attended the event on Tuesday, told the PA news agency: “This is all about Liz Truss aligning herself with Trump and the far right in America.”

He said: “She’s avidly supporting Trump, and actually she’s lending the weight of the office of British prime minister which she held, albeit for a short period of time, to the pro-Trump campaign.

“We thought, she’s aligning herself with the far right in America, and sometimes, not always, but sometimes, one of the best approaches to the far right is to laugh at them.

“And so we decided to install this strategically positioned remote control lettuce banner and press the button towards the end of last night’s event.”

Ms Truss was in the middle of discussing American politics, saying, “I support Trump and I want him to win”, before the banner unfurled.

Once she had been alerted to the sign behind her, the former prime minister was clearly unhappy and left the stage. Ms Truss’s office declined to comment. A spokesperson for Beccles Public Hall and Theatre said the venue is assisting the police.

Michael Marra, who is a Labour MSP and shadow finance secretary, has said that the news that the Scottish version of the winter heating payment will now be means-testedis “another sign of the chaotic incompetence of the Scottish Government and their handling of the public finances in Scotland”.

He told BBC Radio 4’s The World at One: “This letter is revealed on the very same day that Scotland’s public finances show that we have £2,417 per head additional spending in comparison to the rest of the UK in Scotland.

“The people of Scotland are asking – rightly so – why we’re not seeing better outcomes for that money.”

Asked what Labour might have done different to prevent this reduction in spending, he said: “This is a Government that didn’t actually provide a public pay policy to the Scottish Fiscal Commission, which is one of the documents that they’re meant to provide.

“They’ve completely neglected their duties in terms of what they have to do to keep control of public spending.”

Asked if there are areas of public sector pay where Labour would have offered less money, he said: “It’s very difficult to say at the moment […] The absence of that public pay policy that the SNP have failed to produce for two years in a row is a key failure on behalf of the Scottish Government.”

Pressed on the question, he said: “We have to make sure we can put money into people’s pockets to make sure that services continue to run. […] I would have taken, as finance secretary, a considered view of the public finances in Scotland. I would have had a proper pay policy in place for the long term, and I would consider that and spoken to the trade unions about what we had in place.”

He said that Rachel Reeves has “probably” received “the worst economic inheritance of any chancellor since the Second World War” and a “£22bn black hole in spending plans” has had to be filled.

“The Scottish Government have been in a situation for years now where they’ve known of a significant gap between the promises they have made and actually the money that they have got coming in. The Scottish Government do not seem to be able to get a grip of it.”

Scotland’s Deputy First Minister has claimed the “disrespectful and damaging” actions of the UK Government mean a new benefit to help with the cost of fuel bills cannot be paid to all pensioners.

Ministers at Holyrood had initially hoped the pension age winter heating payment – which is being introduced in Scotland to replace the UK’s winter fuel payment – would be a universal benefit.

But after Chancellor Rachel Reeves announced the UK payment will no longer be made to everyone above state pension age, the Scottish Government said it has “no choice” but to do the same.

Social Justice Secretary Shirley-Anne Somerville confirmed on Wednesday that the Scottish payment will now be restricted to “older people who receive relevant eligible benefits”.

Ms Somerville said the move is necessary “when faced with such a deep cut to our funding”, adding: “The reduction we are facing amounts to as much as 90 per cent of the cost of Scotland’s replacement benefit, the pension age winter heating payment”.

Deputy First Minister and Economy Secretary Kate Forbes said the Scottish Government has been forced to limit payments because “the Chancellor announced this cut to the winter fuel payment just weeks before the Scottish Parliament is due to take on responsibility for the payment – and without any consultation with the Scottish Government”.

She added: “Devolving a policy weeks after cutting its budget by almost 90 per cent is disrespectful to everybody involved in shaping the new Scottish policy.

“Not only does it drive a coach and horses through the devolution settlement, it ignores the disproportionate importance of this payment to households in Scotland, who face harsher winters and higher fuel costs.

“Given we are already facing the most challenging financial circ*mstances in the history of the Scottish Parliament, Scotland has no choice but to bear the brunt of Labour’s cut to the winter fuel payment.”

The Scottish Government will make sure public services do not “crumble away”, the Finance Secretary has said, but she warned of “tough decisions” ahead.

Shona Robison was speaking as Government Expenditure and Revenue Scotland (Gers) figures showed a net fiscal deficit of £22.68bn in 2023-24, compared to just over £18bn the previous year.

Published on Wednesday, the figures showed the deficit as a proportion of GDP increased from 8.4 per cent to 10.4 per cent.

Asked if the dire financial warnings could wreck public services, Ms Robison said: “We’ll make sure they don’t crumble away and our priority is clear in making sure that we sustain public services, that we continue to tackle poverty and that we continue to invest in net zero and transforming our economy – those are our key priorities.

“But we will have to decide what we de-prioritise, and that work is ongoing.” Ms Robison also raised the possibility of a reduction in the public sector workforce.

“What I have said in the letter saying we are putting in strict controls is that for the foreseeable future, only recruitment in those absolutely critical areas like, for example, blue light services, can move forward,” she said.

“There is absolutely going to be restraint on recruitment.”

The Scottish Government will work with the public sector, she said, to pinpoint what “voluntary options” are available in light of the policy of not allowing compulsory redundancies.

Government expenditure per person in Scotland is £2,417 higher than the rest of the UK, with £20,418 spent on average for every single person north of the border.

Ms Robison said the deficit is “not a reflection on the finances or policies of the Scottish Government – it is a reflection of UK Government choices”.

She added: “As an independent nation, we would have the powers to make different choices.

“As it is, we are using all the powers we do have to deliver our priorities of growing the economy, investing in net zero, eradicating child poverty and delivering strong public services.”

Universal winter fuel paymentswill be scrapped for pensioners in Scotland, the Scottish Government has announced.

TheSNPadministration blamed the UK Government for the move, saying it had no “choice” but to followthe cuts announced by Labour Chancellor Rachel Reeves.

The annual benefit previously given to all pensioners, worth up to £300 a year, will now be means-tested so it is made available to only the most vulnerable older people.

SNP leader and First Minister John Swinney had condemned Ms Reeves’s decision toditch the universal payment in England and Wales last month.

But the SNP’s Social Justice Secretary Shirley-Anne Somerville said on Wednesday that the Scottish Government now had “no choice” but to follow suit because of looming budget cuts.

“This has been a very difficult decision and not one we want to, or expected to, be making,” Ms Somerville said.

“However, despite all efforts to review our financial position it is a necessary decision when faced with such a deep cut to the budget and in the most challenging financial circ*mstances since devolution.”

Ms Somerville said Ms Reeves’s decision on the winter fuel payments would lead to a £140m cut in funding given to Scotland, so means-testing would be necessary.

Read the full story here.

by Michael Saunders

Today’s figures showinflation edged up to 2.2 per centin July from 2 per cent in June, ending the run of falling or stableinflationin recent months. Behind the headline, however, the details are reassuring.

This is not the start of a new inflation rollercoaster.

The slight rise in the annual rate was because the downward effect from fallingenergy pricesbecame less powerful this month.

This is because inflation is measured compared to costs a year ago – and the ultra-high energy prices of last spring have now dropped out of the annual comparison.

This effect was known in advance, and most forecasters expected inflation to rise slightly in today’s figures.

Looking ahead, the effect from last year’s drop in energy prices is likely to keep headline inflation a little above the 2 per cent target in the next few months.

However, the big picture is disinflationary.

Read more here.

Tory leadership candidate Robert Jenrick has hit out at Sir Keir Starmer, criticising the action the new Prime Minister has taken over his first 40 days in office.

The rate at which house prices were rising in the UK steadied in June, while tenants continued to be squeezed by soaring rents, according to new official figures.

The average price tag for a home increased by 2.7 per cent in the 12 months to June, unchanged from May, the Office for National Statistics (ONS) said.

It marked the fourth month in a row that prices have increased annually, as momentum returned to the market following eight months of annual price falls. The average cost of a home in June was £288,000.

Meanwhile, private rents across the country jumped 8.6 per cent in the year to July, averaging £1,319, according to the ONS’s estimates. This was unchanged from the year to June, and remained below the record-high annual rise of 9.2 per cent recorded in March.

Rent inflation in London hit 9.7 per cent in July, with the average cost for a rental property recorded at £2,114.

Nathan Emerson, chief executive of Propertymark, said: “The rental market continues to feel the harsh reality of ongoing pressures on housing demand, which are outstripping current supply.

“This has a real-world effect on rental prices for consumers and that consequence is prices tend to be pushed further upwards. It is crucial the mismatch between supply and demand is addressed as a priority to help ease a current ‘nine applications per available property’ trend that we are witnessing.”

Sarah Coles, head of personal finance for Hargreaves Lansdown, said rent rises remain “eye-watering”, despite the pace of increases slowing.

“Landlords continue to sell up in the face of higher mortgage costs, tougher tax rules and the likelihood of more stringent legislation,” she said.

“Meanwhile, growing tenant numbers make it harder to get hold of a property, even if you’re prepared to pay sky-high prices. It’s difficult to see how things will ever get any better.”

The jump in the overall rate of inflation in July to 2.2 per cent has been caused by price rises accelerating across a range of everyday items, as well as the cost of some goods and services not falling quite as fast as they did in June.

Changes in the price of domestic fuels have helped drive the increase.

The average cost of household gas fell by 22.8 per cent in the year to July, a much smaller decrease than the drop of 37.5 per cent in the year to June. The cost of electricity showed a similar trend, dropping by 19.5 per cent in the year to July compared with a fall of 21 per cent in the year to June.

Some items saw the rate of inflation accelerate.

These included tea, where the average price jumped 8.4 per cent in the 12 months to July compared with a smaller rise of 6.8 per cent in the year to June; chocolate (up 6.7 per cent in July compared with 5.3 per cent in June); ice cream (up 4.3 per cent in July, up 2.7 per cent in June); fruit (up 2.7 per cent in July, up 1.6 per cent in June) and women’s clothes (up 2.6 per cent in July, up 1.8 per cent in June), according to figures published by the Office for National Statistics.

Other items saw prices falling less slowly in the year to July than the previous month, which will also have affected the overall rise in inflation.

Examples included margarine and other vegetable fats (down 2.1 per cent in July compared with a drop of 3.8 per cent in June); whole milk (down 1 per cent in July, down 6.8 per cent in June); pasta and couscous (down 2.6 per cent in July, down 3.6 per cent in June); and second-hand cars (down 8.4 per cent in July, down 9.8 per cent in June).

By contrast, some items saw the rate of inflation slow in the latest figures.

There was a sharp slowdown in the average price of hotels, motels and similar accommodation, which rose by 3.2 per cent in the year to July compared with a much bigger jump of 9.9 per cent in the year to June.

The cost of travelling by bus or coach was up by 6.2 per cent in the year to July, compared with a rise of 9.6 per cent in the year to June, while cinema, theatre and concert tickets were up 4.4 per cent in July compared with an increase of 7.4 per cent in June.

Grocery items that saw a slowing of inflation include crisps, up by 0.6 per cent in price in the 12 months to July compared with 2.6 per cent in June; coffee (up 0.1 per cent in July, up 1.9 per cent in June); pizza and quiche (up 0.8 per cent in July, up 1.8 per cent in June); eggs (up 1.4 per cent in July, up 2.3 per cent in June); and bread (up 1.1 per cent in July, up 1.6 per cent in June).

There are also a few items that have moved from positive to negative inflation, with the average price of fruit and vegetable juices, for example, falling by 1.3 per cent in the year to July after rising by 4.5 per cent in the year to June.

Meanwhile, the average price of cheese and curd fell faster in the year to July (down 4.3 per cent) than in the year to June (down 3.1 per cent), as did rice (down 2.7 per cent in July, down 1.9 per cent in June), fish (down 4.2 per cent in July, down 2.1 per cent in June) and passenger air travel (down 10.4 per cent in July, down 0.9 per cent in June).