UK inflation beats BoE forecasts with 2.5% 12-month uptick

Increase from 2.1% puts pressure on the Bank of England

Lauren Mason
clock • 3 min read

The UK’s Consumer Price Index rose by 2.5% in the 12 months to June 2021, marking the strongest acceleration in inflation since August 2018, figures from the Office for National Statistics (ONS) show.

The 12-month inflation rate spells a 40-basis point uptick compared to the 2.1% rise over 12 months to May, while inflation for June alone increased by 0.5%, compared to a 0.1% uptick over the same timeframe last year. The UK CPI including owner occupiers' housing costs (CPIH) rose by 2.4% over the last 12 months to June, surpassing the Bank of England's inflation target for the second consecutive month. Jon Hudson, manager of the Premier Miton UK Growth fund, said part of the rise in UK inflation is due to the "low base effect from last year" while spending was constrained under lock...

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