Prices continue to rise in line with inflation

Inflation is at 2.9 per cent and has increased by 0.2 per cent since May, indicating that prices are going up much faster than wages.

The latest inflation figure represents a 14-month high in the UK but was lower than the 3 per cent forecast by markets.

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Inflation hits 14-month high

Inflation surged to a 14-month high in June as rising prices at the fuel pumps and 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 (ONS) said.