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Story summary
- Prime Minister Andy Burnham said inflation fell to 2.6% in June, supporting his cost-of-living plan.
- Chancellor John Healey said the drop was news families want and announced a VAT holiday on electricity.
- He also announced a £2 bus-fare cap from January and noted petrol fell 2.1p to 155.3p per litre.
- Bank of England’s rate stays at 3.75% while oil rose above $90 a barrel after renewed Middle-East fighting, risking inflation.
