Inflation increase is "likely to be the start of a rising trend", says economist

INFLATION rose to 0.5% last month, as prices nudged upwards after a long period of stagnation.

 The Consumer Prices Index (CPI) reached its highest point in 19 months for the year to June 2016, compared with a 0.3% rise in the year to May.

The Office for National Statistics said: “Rises in air fares, prices for motor fuels and a variety of recreational and cultural goods and services were the main contributors to the increase in the rate.

“These upward pressures were partially offset by falls in the price of furniture and furnishings and accommodation services.”

The June rate is a little above the position seen for most of 2016, though it is still relatively low historically.