Inflation hits 18-month high as food prices climb
- UK inflation rose to a near 18-month high in June, with the Consumer Prices Index reaching 3.6 per cent, an unexpected increase from 3.4 per cent in May.
- The drivers of the increase included food prices rising for the third consecutive month, and a significant rise in air fares. The main factor was fuel prices falling less than they had previously.
- Chancellor Rachel Reeves acknowledged the ongoing cost of living struggles for working people and said the government was committed to bring inflation down.
- The unexpected rise will be closely scrutinised by the Bank of England ahead of its August interest rate decision, potentially influencing the pace of future rate cuts.
- One economist suggested June's uptick could mark the beginning of a “slight summer surge” in inflation, influenced by escalating business costs and global trade instability.