Inflation rose to its highest level for nearly 2 years in July as an increase in fuel prices helped to push the UK’s inflation rate higher last month.
Figures released by the Office National Statistics (ONS) showed that the Consumer Price Index (CPI) increased to 0.6% from 0.5% in June and 0.3% in May, ahead of expectations.
While the rate was settled at 0% for most of 2015, it is generally thought that it will continue to rise in the months ahead.
More expensive alcoholic drinks and an increase in the cost of hotel rooms also helped to increase the CPI rate, the ONS said.
The Retail Prices Index (RPI) measure of inflation rose to 1.9% in July from 1.6% in June.
July’s RPI inflation rate sets the cap for how much regulated rail fares in England, Scotland and Wales can rise by next year.
Following the result of June’s Referendum to leave the European Union, the value of the GBP has fallen which in turn has affected the cost of imports for manufacturers.
The cost of imported food materials rose 10.2% and the price of imported metals rose 12.4%.