Inflation hits 3.8% high in June

Soaring food and drink prices were mainly to blame for the rise with prices up by a record 2.1% while increasing fuel costs also played their part. The inflation figure is now way above the 2% target and supports the Bank of England’s fears it may break through 4% this year. CPI is now at its highest since records began in January 1997 and prior to this, it was last higher in May 1992. The other key inflation measures are all pointing the same way with the Retail Price Index (RPI) rising to 4.6% in June from 4.3% in May. Figures released yesterday also showed factory-gate inflation,...