UK inflation rises to highest level since 2018

UK inflation rose more than the Bank of England's target, jumping to 2.5% in June, the highest level since August 2018, after rising 2.1% in May. Analysts had expected British inflation to hit 2.2% in June. BoE Deputy Governor John Cunliffe said the central bank will take a closer look at how likely inflation is to persist when it publishes forecasts next month, but much of the increase was linked to the reopening of the economy.

The Bank of England expects inflation to decline towards its 2% target over the next two years, fuel prices in Britain rose year-on-year by 20.3%, the largest rise since 2010, and used car prices rose 5.6% in June.