New government data shows inflation fell to 2.5 per cent in June, as measured by the Retail Prices Index.

Meanwhile, the Consumer Prices Index inflation rate has also fallen – down to 1.8 per cent, the lowest monthly rate since late 2009.

According to the figures from the Treasury, the biggest price hikes over the year came in food, tobacco and travel.

But the statistics also show motoring costs and the price of leisure goods have both fallen slightly since June last year.