The consumer prices index (CPI) rose to 3.6% in June, exceeding predictions and indicating sustained inflation pressures. The increase was driven primarily by motor fuels, with even a decrease in petrol prices contributing to the upward trend. Air fares jumped 7.9%, marking the fastest increase for June since 2018, while food prices saw a notable rise, particularly in cakes and cheddar. Core inflation also increased to 3.7%, highlighting widespread price pressures across various goods and services, and complicating future decisions for the Bank of England's monetary policy committee.
The consumer prices index increased at a higher than expected rate of 3.6% in June, remaining in line with the Bank of England's expectations for an inflation hump over the summer.
Motor fuels are the main factor behind the upward shift in CPI from 3.4% in May, despite petrol prices falling by 0.5p between May and June.
Food prices have continued to be strong, rising at an annual rate of 4.5%, the fastest since February last year, driven by higher costs for cakes and cheddar.
The core inflation rate, excluding volatile items, rose to 3.7% in June, indicating sustained price pressures across various sectors and complicating the Bank's decision-making.
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