UK inflation rose to a higher-than-expected 0.5 per cent last month after fuel prices increased and the Euro 2016 football tournament helped drive up the cost of air fares, new figures show.
The Office for National Statistics (ONS) said Consumer Price Index (CPI) inflation in June was up from 0.3 per cent in May and matched the 15-month high recorded in March.
CPI also came in higher than economists’ expectations of a rise to 0.4 per cent. Last month’s hike in the cost of living came in part from soaring flight prices, which climbed by a record 10.9 per cent between May and June, pushed higher by more expensive air fares to Europe.
But the ONS said it was too early to see the impact on inflation of the plunge in the value of the pound triggered by Britain's decision to leave the European Union.
ONS statistician Phil Gooding said: “The rising cost of European flights, possibly boosted by the Euro football championships, was the biggest reason for this month’s increase in inflation.
“The growing cost of oil, feeding through to petrol prices, also helped nudge up CPI. “Today’s figures were collected before the EU referendum, so recent falls in the value of the pound will have had no impact on them.”
Press Association
