LONDON — Britain's annual inflation rate fell to 2.6% in June, down from 2.8% in May, according to the latest official figures, providing fresh signs that price pressures are beginning to ease across the economy. The decline was driven largely by lower food and motor fuel prices, with inflation coming in slightly below economists' expectations.

The latest data offers welcome relief for households still facing elevated living costs, while strengthening hopes that inflation is moving closer to the Bank of England's 2% target. Falling energy costs following recent improvements in global markets also contributed to the slowdown, although policymakers continue to monitor underlying inflation risks.

Economists say the figures could influence the Bank of England's upcoming interest-rate decision, though officials are expected to remain cautious until there is clearer evidence that inflation will remain under control over the coming months. Markets are also watching wage growth and broader economic activity for further signs of stability.

The easing inflation rate is likely to provide a boost to consumer confidence and business sentiment as the UK government continues to focus on economic growth, investment and easing pressure on household finances.