Why did UK inflation rate fall to 2.8% in July?

The rate of consumer prices index (CPI) inflation fell to 2.8% in July, down from 2.9% in June, according to the Office for National Statistics (ONS).

The Bank of England's target for CPI inflation is 2%.

Phil Gooding from the Office for National Statistics explained that the drop came from reduced transport, clothing and leisure costs.

However, he said "the average family is going to feel the pinch" because pay was only rising by 1% per year.