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UK inflation rate falls to 1.6%

The UK inflation rate falls more than expected in July as the cost of clothing, footwear, food and non-alcoholic drinks eases back in the month.

Annual inflation falls to 1.5% in May compared with 1.8% in April, says Office for National Statistics.

Eurozone inflation fell to 0.5% in May, down from 0.7% in April and below its 2% target, according to official figures.

Consumer prices in Japan rise at their fastest pace in 23 years in April, surging 3.2% from a year earlier, as the sales tax rise comes into effect.

Higher fares for flights and ferries helped to push the rate of inflation up in April, the first increase in the rate for 10 months.

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