UK Inflation Rises to 1.9% in June

The rate of UK inflation rose sharply in June, pushed up by higher clothing, footwear, food and non-alcoholic drinks prices, official figures show.

The Consumer Prices Index rose to 1.9%, up from 1.5% in May, according to the Office for National Statistics.

Women’s clothing prices contributed heavily to the rise.

Air fares and furniture prices also pushed the inflation rate up, the ONS said.

The rate is now close to the Bank of England’s 2% target. It has remained below the target for seven consecutive months.

The pound jumped against the dollar following the inflation figures, climbing as high as $1.7144, around three quarters of a cent higher on the day.

Inflation as measured by the Retail Prices Index (RPI), which includes housing costs, rose to 2.6%, up from 2.4% in May.

Separately, figures from the ONS showed that annual house price inflation hit 10.5% in May.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza