UK inflation rises sharply to 2.5%

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Britain’s inflation rate rose sharply in June, far exceeding expectations and adding to pressure on the Bank of England to take the rise in prices more seriously.

Measured by the consumer price index, the annual rate of inflation hit 2.5 per cent in June, rising from a rate of 2.1 per cent in May, the highest since August 2018.

Higher commodity prices contributed to the increase through rising costs at petrol pumps, but the causes of the increase in inflation in June were widespread with only healthcare services acting as an anchor on the rate.

Second-hand car prices were singled out by the Office for National Statistics as a driver of inflation this year, as in the US, with buyers seeking used cars as an alternative to new, while car production has been severely hit by the global shortage of semiconductors.

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