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UK inflation surges to 2.5%, highest in nearly 3 years

Mount Equity Group Tokyo, Japan > News > Markets > UK inflation surges to 2.5%, highest in nearly 3 years
  • June CPI rises to 2.5% from 2.1% in May
  • Reuters poll had pointed to 2.2% increase
  • Fuel prices up 20% yy, biggest jump since 2010
  • Bank of England sees CPI exceeding 3%

LONDON, July 14 (Reuters) – British inflation jumped further above the Bank of England’s target in June when it hit 2.5%, its highest since August 2018 and up from 2.1% in May, putting the focus of the BoE’s plan to keep its huge stimulus programme in place.

Official data showed higher prices for food, fuel, second-hand cars, clothing and footwear all pushed inflation up last month as the economy bounced back from its lockdown slump, the Office for National Statistics said.

The reading was above all forecasts from economists polled by Reuters who mostly had expected consumer price inflation (CPI) to hit 2.2% in the 12 months to June.

Sterling strengthened against the U.S. dollar after the news.

Data published on Tuesday showed U.S. consumer prices rose by 5.4% in the 12 months…

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