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East Midlands Chamber News

Inflation rises to 2.9 per cent

The rate of consumer price index (CPI) inflation increased to 2.9 per cent in June, up from 2.7 per cent in May, according to the Office for National Statistics (ONS).

The figure, a 14-month high, was lower than the three per cent expected by some markets.

A rise in the inflation rate had been anticipated because petrol and clothing prices were higher than a year earlier. But slower rises in airfares and food prices kept the figure lower.

Retail prices index (RPI) inflation also rose, to 3.3 per cent from 3.1 per cent in May.

The RPI index is used to calculate some pensions, as well as inflation-linked government bonds.

It is calculated differently from CPI and includes some housing costs and other items not included in CPI.