Jump in flight prices contributes to UK inflation

Jump in flight prices contributes to UK inflation

Higher air fares, fuel and consumer spending helped push up the UK inflation rate by 0.5% last month.

The UK inflation rate, as measured by the Consumer Prices Index (CPI), rose from 0.3% in May, official figures show.

Much of the rise was the result of European air travel, possibly connected to the Euro 2016 football tournament, according to the Office for National Statistics.

The inflation figures are based on data collected before the EU referendum vote on June 23.

The cost of flights jumped by a record 10.9% between May and June, ONS statistician Phil Gooding said.

“The growing cost of oil, feeding through to petrol prices, also helped to nudge up CPI,” he added.

City analysts expect inflation to rise sharply in the coming months as the fall in the pound relative to other currencies following the Brexit vote makes goods imported into the UK more expensive.

The 0.5% annual increase in CPI matches that in March this year. It was last higher in November 2014.

But this measurement of the cost of living has remained well below the Bank of England’s 2% target for more than two years.


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