UK inflation surges to 14-month high

CPI rises to 2.9% in June on back of rising fuel prices

Tue, Jul 16, 2013, 09:56

UK inflation surged to a 14-month high in June as rising prices at the fuel pumps and shallower discounting by fashion retailers intensified pressure on households.

Consumer Prices Index (CPI) inflation rose to 2.9 per cent last month, from 2.7 per cent in May, the Office for National Statistics (ONS) said.

It is the highest level since April 2012, although inflation was prevented from climbing higher by falls in the prices of fruit, vegetables, bread, air fares and package holidays.

The figure was weaker than economists’ forecasts of a 3 per cent level, and is expected to fall later in the year as commodity prices ease.