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Inflation Rises To 2.9 Per Cent In June

UK inflation, as measured on the consumer prices index (CPI), rose to 2.9 per cent in June, up from 2.7 per cent in May, data from the Office for National Statistics (ONS) has shown.

Despite the figure reaching a 14-month high, the ONS said inflation was ‘fairly calm’ when compared to with the longer term.

According to ONS data, this month’s inflation figures came from three key contributors;

The largest contribution came from an increase in transport costs, rising 0.1 per cent between May and June 2013 compared with a fall of 0.5 per cent during the same period a year ago

The cost of clothing and footwear fell by 1.9 per cent between the two months, however this was a smaller fall when compared with the 4.2 per cent fall between the same months last year

Airfares helped to hold inflation back from a larger increase, with last month’s large rise in airfares dropping away slightly in June.

Economists had predicted inflation to rise by three per cent.

Speaking last month, former Bank of England Governor Mervyn King said inflation is likely to remain ‘stubbornly high’ until 2015 with the Bank predicting a further rise in the coming months.

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