Official inflation figures released show that the Consumer Price Index (CPI) has fallen to 3.10%, a small fall of 0.10% from the previous month but still way above the government’s target of 2%.

Transport costs (particularly prices of secondhand cars and fuel) were the largest driver to the decrease in annual inflation between June and July. Other large downward contributions came from clothing and footwear, miscellaneous goods and services, and recreation and culture.

The main upward pressures to inflation between June and July came from food and non-alcoholic beverages, and furniture and household goods.

Ann Robinson, director of consumer policy at uSwitch.com, said: “Today’s figure of 3.1% may represent a drop