The Bank of England was helped in its fight against inflation yesterday by figures showing lower-than-expected increases in manufacturing prices last month.
Factory gate prices rose by 0.2 per cent last month - less than than the 0.3 per cent predicted by experts - despite increased petrol and food product costs, the Office of National Statistics said.
Inflation for the year to June was unchanged at 2.4 per cent - again short of the 2.6 per cent expected by economists.
The news is likely to be welcomed by the bank's monetary policy committee, which is trying to keep Consumer Prices Index (CPI) inflation at two per cent.
The committee has raised interest rates five times since last August to bring down the CPI, which currently stands at 2.5 per cent.
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