UK Inflation Continues To Increase During June

The UK rate of inflation rose to 1.6% in June, bringing it closer to the Bank of England’s target of 2%, according to the latest figures from the Office of National Statistics.

The increase in the consumer price index, from 1.5% in May, means that the inflation rate is at its highest level for more than a year. The UK’s previously targeted underlying Retail Prices Index rate of inflation, also rose from 2.8% to 3% last month.

According to the Office of National Statistics, the largest upward influence on the inflation rate came from recreation and culture with contributions from a range of products, including toys, computer games and DVDs. There was also an upward effect from advanced booked foreign holidays.

A small downward effect on CPI inflation came from second had car prices, which fell this year, but were unchanged last year. Further downward effects came from reduced charges for foreign exchange and from price changes for fruit.

The Bank of England has been raising rates recently to keep inflation in check, although it kept rates on hold at 4.5% earlier this month.

Subscribers can access CPI trends by selecting “Ten Year Trends” from the drop-down box at the top of this page.