Inflation is on the rise again. For the third consecutive month, the Consumer Prices index outpaced the forecasters’ consensus, landing at 2.5 per cent in June, up from 2.1 per cent in May.
It’s not just that inflation is overshooting expectations that should trouble us, but that its pace of growth is so fast: at the start of the year, the headline rate was still close to the ground, coming in at 0.7 per cent in January and March, and 0.4 per cent February.
Now, it’s ahead of the Bank of England’s target – and there are no signs of retreat.
Today’s update from the Office for National Statistics further challenges the Bank’s argument that the rise is simply transitory, especially as it becomes clear that core inflation is up: food prices are increasing, but so, too, are clothes and second-hand cars.