UK: Inflation surges to 14-month high

Inflation figures are set to hit a 14-month high today after June saw a surge in prices at petrol pu

Inflation figures are set to hit a 14-month high today after June saw a surge in prices at petrol pumps and on supermarket shelves - Credit: PA

Inflation surged to a 14-month high in June as rising prices at the fuel pumps and shallower discounting by fashion retailers intensified pressure on households.

Consumer Prices Index (CPI) inflation rose to 2.9% last month, from 2.7% in May, the Office for National Statistics (ONS) said.

It is the highest level since April 2012, although inflation was prevented from climbing higher by falls in the prices of fruit, vegetables, bread, air fares and package holidays.

The figure was weaker than economists’ forecasts of a 3% level, and is expected to fall later in the year as commodity prices ease.