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.

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Treasury: Gov't has 'helped families with living costs'

The Government is helping families with the rising costs of living, according to The Treasury, as new figures show a 14-month high in inflation, indicating high prices.

Although inflation is down from its peak of 5.2% in 2011, the consumer price index rose to 2.9% in June, from 2.7% in May.

At the same time, to help families with the cost of living, the Government has increased the tax-free personal allowance to £10,000, which will take 2.4 million people out of income tax altogether and save a typical basic rate taxpayer almost £600, and frozen fuel duty, which has kept petrol prices 13p per litre lower than they would otherwise have been.

– Treasury Spokesman

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