The Office for National Statistics (ONS) said the UK’s inflation rate increased from 3.4% in May, reaching 3.6% in June. Economists had expected a slowdown, but higher costs in important categories led to inflation that was higher than anticipated.
The ONS said the increase was driven by rising fuel prices, as well as airfares and restaurant bills. These increases put even more strain on household budgets, especially during the prime summer travel season.
UK families are taking the pain of an increasingly expensive cost of living. The bills at the supermarket are prohibitively high, and utility rates do not look like they are going anywhere. “Many households now economise on non-essential buying to offset their monthly spending.
“My weekly shop becomes more expensive every month,” said a resident in Manchester. “It’s just difficult to save or plan things ahead.
The surprise surge in inflation may influence future decisions at the Bank of England. In recent months, the central bank had put interest rate hikes on hold, based on the expectation that inflation would fall more in line with its 2% target. But the new data might alter that calculus.
