Inflation rate sees fourth month of consecutive growth

14 Jul 21

Inflation rose by 2.4% in the 12 months to June 2021, the highest level in almost three years, after the easing of COVID-19 lockdown restrictions prompted a rise in demand for goods and services.

The Office for National Statistics (ONS) said the fourth consecutive month of rising inflation rates was driven by higher food and fuel costs, as well as a boost in people eating out and staying in overnight accommodation.

Clothing and footwear prices also increased alongside housing, household services and furniture.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said:

“Some of the increase is from temporary effects, for example rising fuel prices which continue to increase inflation, but much of this is due to prices recovering from lows earlier in the pandemic.”

The Bank of England expects inflation to push above 3% by the end of the year before falling back towards its 2% inflation rate target.

It recently ruled out putting up interest rates as a way to combat inflation, reflecting its prediction that costs will fall on their own.

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