BUSINESS LIVE: UK inflation reaches highest rate since 2018; City Watchdog blasts Provident Financial over compensation cap plans; Barratt Developments bolsters profit outlook
- Britain’s inflation rates has risen by 2.5% year-on-year, ONS says
- Inflation level higher than expected and above Government 2% target
Britain’s rate of inflation jumped again in June, outstripping economists’ predictions and passing the Government’s 2 per cent target.
The consumer prices index measure of inflation increased by 2.5 per cent in the 12 months leading up to June 2021, largely driven by rises in transport costs, the Office for National Statistics said.
Inflation is now the highest it has been since August 2018.
The cost of food, clothes, fuel, second-hand cars, eating and drinking out have all risen this year amid the easing of lockdown restrictions.
Earlier this week, it emerged that inflation in the US hit a 13-year high last month, driven by a rise in the cost of used cars.
In the US, consumer prices increased by 5.4 per cent in the year to the end of June, up from 5 per cent the previous month, marking the largest increase since August 2008.
