Fuel Blamed For Inflation Rise In June

Written By Unknown on Selasa, 16 Juli 2013 | 16.01

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.

The Consumer Prices Index (CPI) inflation rose to 2.9% last month, from 2.7% 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 ONS said: "The largest upward contributions to the change in the rate came from motor fuels and clothing and footwear.

"The largest downward contribution came from air transport."

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

Meanwhile the headline rate of retail price index (RPI) inflation rose to 3.3% in June, up 0.2% from the May figure.

The Bank of England's main task is to use monetary policy as a tool to keep annual inflation close to the Government-set target level of 2%, in order to preserve the value of money.

However, the annual CPI rate has held stubbornly above the target since November 2009.

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