UK CPI inflation falls to 4.2% in June

The UK inflation rate fell unexpectedly in June, with the Consumer Prices Index (CPI) measure dropping to 4.2%.

Markets had expected the figure to hold steady once again at 4.5%.

The Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - also fell, from 5.2% to 5%, according to the Office for National Statistics.

The slowdown came courtesy of falling prices for games, toys and hobbies, as well as for clothing and footwear.