THE inflation rate fell more than expected in July as the cost of clothing, footwear, food and non-alcoholic drinks eased back in the month.

The Office for National Statistics said Consumer Price Index (CPI) inflation fell to 1.6% from 1.9% a month earlier.

But CPI remains well above average wages which grew by just 0.6% in the three months to June.

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Economists had expected inflation to fall to 1.8% in July.