This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23324635
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK inflation rate rises to 2.9% in June | UK inflation rate rises to 2.9% in June |
| (35 minutes later) | |
| The rate of consumer price index (CPI) inflation increased to 2.9% in June, up from 2.7% in May, according to the Office for National Statistics (ONS). | The rate of consumer price index (CPI) inflation increased to 2.9% in June, up from 2.7% in May, according to the Office for National Statistics (ONS). |
| The figure, a 14-month high, was lower than the 3% expected by markets. | The figure, a 14-month high, was lower than the 3% expected by markets. |
| A rise in the inflation rate had been anticipated because of higher petrol and clothing prices versus a year ago. But it was moderated by slower annual rises in airfares and food prices. | |
| Retail prices index (RPI) inflation also rose, to 3.3% from 3.1% in May. | Retail prices index (RPI) inflation also rose, to 3.3% from 3.1% in May. |
| The RPI index is used to calculate many pensions, as well as inflation-linked government bonds. It is calculated differently as it includes some housing costs and other items not included in CPI, and is typically higher than the CPI measure. | |
| Cheaper airfares | |
| Despite reaching its highest level in over a year, the CPI measure remains well below the 4%-5% range experienced during much of 2011. | |
| The Bank of England is supposed to keep CPI as close as possible to 2%. If it veers above 3%, the new Bank governor, Mark Carney, would be required to write a letter of explanation to the Chancellor George Osborne. | |
| The ONS said that air transport played the biggest role in dampening inflation this month, with fares falling 2.8% during June, compared with a 7.4% increase in June 2012, due to lower European air fares in particular. | |
| Clothing and footwear prices fell 1.9% during the month - as they typically do during the summer sales - but the fall was less than the 4.2% drop seen in June last year, which the ONS said had been the largest such decline on record. |