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July's drop in material prices offers modest inflation relief

A rare ray of hope on the UK inflation horizon emerged yesterday, when official data revealed producers' material and fuel costs fell unexpectedly in July for the first time since last August.

A rare ray of hope on the UK inflation horizon emerged yesterday, when official data revealed producers' material and fuel costs fell unexpectedly in July for the first time since last August - dropping at the fastest pace for one and a half years.