Inflation rises to 1.9%

THE headline rate of inflation jumped to 1.9% in June according to the Office for National Statistics (ONS).

The unexpected 0.4% increase on May’s figure was the result of the rising costs of clothing, food and non-alcoholic drinks, and air transport.

The ONS said there was no downward pressure from other areas to offset the increase.

The Retail Prices Index (RPI), which includes housing costs, grew by 2.6%, up from 2.4%.  

The ONS said house prices, driven by London, were up 10.5% in the year to the end of May. Excluding London there was growth of 6%.