Inflation has fallen over the last month, the latest figures showed this morning, with an annuities expert saying it was welcome news for retirees.

The Consumer Prices Index grew by 1.6% in the year to July 2014, down from 1.9% in June, the Office for National Statistics reported.

Financial services were listed as one of the main contributions to the fall in the rate.
Vanessa Owen, LV= head of annuities and equity release, said: "The fall in inflation is welcome news for those households concerned about the rising cost of living.
"This is particularly important for retirees who are often hit hardest by rising inflation as this segment of society spends a considerably higher proportion of their disposable income on bills, such as electricity and less on luxury items.
"With people spending longer in retirement, the risk of inflation eroding someone's purchasing power is an issue that should be considered when deciding how to structure their income.
"Whilst there are retirement solutions available that provide an element of inflation-proofing, the majority of annuities are purchased on a level basis.
"However following the pension reforms we expect this to change as increasing numbers of retirees look to alternatives such as fixed term and investment linked annuities.
"The retirement products that best suit a retiree's need will depend on their individual circumstances."

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CPIH (not a National Statistic) grew by 1.5% in the year to July 2014, down from 1.8% in June. RPIJ grew by 1.8%, down from 2.0% in June.
Andrew Wilson, head of investment at Towry, said: "Today's unexpectedly weak inflation figures are due to both the current strength of sterling and tough times on the High Street.
"While house prices continue to rise and have hit a record average of £265,000, the pace of house price increases is decreasing, which is good news.
"The fall in inflation will give Mark Carney and the Bank of England more breathing space in terms of pushing up interest rates, and will soften sterling.
"RPI figures for July, also released today, mean that rail fares are set to rise by an average of 3.5% in January.
"UK rail travel is already expensive and fairly inefficient – yet it proves increasingly popular.
"Arguably therefore, rail users should pay even more rather than Britain's railways relying on public subsidies."