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Big drop in inflation

Lowest level since beginning of 2017

There was a sharp drop in the rate of inflation last month, and it's now at its lowest level since the start of last year.

As measured by the Consumer Price Index, it stood at 1.6% in July, down from 2.6% the previous month.

The Cabinet Office says the impact of the GBP/EUR exchange rate which has been present during much of the previous 12 months has fallen away.

It adds sales and discounting within the 'clothing and footwear' and 'recreation and culture' categories have also had an impact on the overall rate of inflation.

Whilst there continues to be upward pressure from increasing oil costs, on both petrol and oil for heating, travel costs have been causing less pressure on inflation than in previous months.

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