Today's inflation figures are a warning light on the UK economy's dashboard, according to stockbroker MB Capital trading director Marcus Bullus.
UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear.
A dramatic shift in the outlook for interest rates has been seen with money market indicators now pricing in a base rate rise to 0.75% in two years' time rather than three.
UK CPI inflation rose from 2.4% to 2.7% in May, according to the Office for National Statistics, a larger than expected rise driven by transport and clothing costs.
UK CPI inflation has fallen to 2.4% in April, a larger-than-expected drop from the 2.8% figure recorded in March.
High inflation has hit the UK economy by £10bn over the past three years, according to a report from Ernst & Young (E&Y).
More than half of advisers believe pensions invested in lifestyle funds are riskier than they were twelve months ago, as a result of speculation about a bubble in the bond market.
We reveal the best strategies to use to combat the destructive impact of inflation...