The inflation rate in the UK soared in June due to rising food and automobile fuel prices.
This National Bureau of Statistics (ONS) said that the consumer price index (CPI) rose to 2.5% from 2.1% last month, further away from the Bank of England’s 2% target.
The official data once again exceeded analysts’ expectations, who had expected it to rise to 2.2% this month.
When the data was released, the world was worried about the possibility of a surge in inflation. The United States announced its June CPI inflation rate of 5.4% on Tuesday.
The Bank of England warned that the inflation rate could reach 3% by the end of this year.
Jonathan Athow, deputy national statistician for economic statistics at the National Bureau of Statistics in the United Kingdom, said: “inflation It rose to the highest level in the past three years for the fourth consecutive month.
“The increase is common-for example, from rising food and used car prices, and reportedly increased demand.
“Part of the increase comes from temporary effects – for example, fuel prices will continue to push up inflation, but a large part of this is due to the price recovery from lows in the early stages of the pandemic.
“Compared with the normal seasonal pattern of summer sales, the rising prices of clothing and footwear have also increased the upward pressure this month.”
The National Bureau of Statistics of the United Kingdom stated that food and non-alcoholic beverages contributed to inflation after prices rose 0.2% that month compared with the significant deflation in the same period last year.
In terms of food, the biggest shift was caused by the prices of bread and cereals, where the price of a single package of cakes and muffins rose this year, but fell a year ago.
At the same time, gasoline prices rose by 2.5 pence between May and June, rising to the highest price since October 2018.
According to the National Bureau of Statistics of the United Kingdom, automotive fuel has increased by more than 20% in the past year, which is the largest annual increase in more than a decade.
Elsewhere, rising prices for used cars have also contributed to inflation, with reports that prices were boosted by increased demand when the most recent lockdown ended.
There are also signs that due to the shortage of semiconductor chips used in production, the supply of new cars has been delayed, and some buyers have turned to the used car market.
The retail price index (RPI), a separate indicator of inflation, rose to 3.9%, the highest level since January 2018.
This month’s CPI, which includes the cost of owner-occupier housing (CPIH)-the UK’s National Bureau of Statistics’ preferred inflation indicator-was 2.4%, compared with 2.1% in May.
