UK diesel prices fell sharply in June, the latest sign the inflation shock tied
to the Iran war is rapidly fading, the RAC said. Average diesel dropped nearly
17p to 167p per liter, the biggest single-month fall since records began in
2000. Petrol fell 8p to 151p per liter, the seventh-largest monthly decline on
record. The fuel price falls are likely to offset some of the inflationary
impact from a 13% household energy bill rise that took effect yesterday. Markets
now expect the UK peak inflation to be well below the BoE's April projection;
traders have sharply reduced rate-hike bets and no longer fully price a hike
this year.
