Inflation hits 2.9% in June as price pressures continue

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UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear.

The rise, while below economists' expectations of a rise to 3%, continues a gradual creep higher in the inflation rate seen in recent months. But the number means new Bank of England governor Mark Carney (pictured) will be spared having to write to the Chancellor explaining why inflation is one percentage point above its target 2% level. Core CPI inflation, meanwhile, rose slightly from 2.2% to 2.3% on the month. But economists expect price pressures will start to subside from here. "Looking ahead, it seems likely that June's inflation figure will represent this year's peak. Indeed...

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