Consumer inflation fell for a second month to 3.2% in June, raising hopes that weakening price pressures will see interest rates remain at rock bottom.

Official figures showed the consumer prices index measure of inflation fell back from the May level of 3.4%, which itself had eased from a lofty April peak of 3.7%.

This is still well above the Bank of England's 2% target and uncomfortably high for some rate-setters, with Andrew Sentance voting for a rate hike at the June meeting of the monetary policy committee.

But the MPC this month left rates unchanged for the 16th month running to ensure the economic recovery is not stifled.

The inflation figures come a day after GDP growth in the first quarter of 2010 was finally confirmed at 0.3%, although worries are emerging that the weak recovery is being propped up by government spending that is about to be slashed.

The Office for National Statistics today said discounting by retailers in the sales season and falling petrol costs helped to bring down overall inflation in June.

Clothing and footwear prices fell by 2.1% - the biggest reduction seen in June since the ONS began collecting monthly figures 14 years ago. Clothing sales were more widespread this year, particularly for categories such as womenswear, the ONS added.

Read more: http://www.thisismoney.co.uk/news/articl...z0tZpCzEUJ