UK inflation hits highest for almost a year and a half

UK inflation hits highest for almost a year and a half

Inflation in the UK saw a significant increase, with prices rising by 3.6% in the year leading up to June. This spike in inflation, the sharpest since January 2024, was reported by the Office for National Statistics (ONS). The latest figures show a notable jump from the 3.4% rate recorded in May. For consumers, the rate at which prices are rising is crucial as it directly impacts their purchasing power, making goods and services more expensive.

The rise in inflation is largely attributed to motor fuel prices, which saw only a slight decrease compared to a significant drop during the same period last year. Food price inflation has also been on the rise, marking its highest annual rate since February of the previous year. Despite these increases, inflation still remains well above the Bank of England’s target rate of 2%. A rate cut is anticipated at the upcoming rate-setting meeting next month to help address this imbalance.

While average wages have increased by 5.2% over the past year, providing some relief to individuals, the daily impact of rising prices on essential items such as food and petrol is being felt by consumers. Food prices, in particular, saw a significant rise, with a rate of 4.5% – the highest since February 2024. Chancellor Rachel Reeves acknowledged the challenges faced by individuals in managing living costs, affirming the government’s commitment to injecting more money into people’s pockets to alleviate the financial strain

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