UK inflation hits highest for almost a year and a half

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Prices rose by 3.6% in the year to June, the steepest rise in inflation since January 2024, the Office for National Statistics (ONS) said.

That marks a significant rise from the 3.4% rate in May.

The rate at which prices rise matters to shoppers, whose money doesn't go as far if goods and services are becoming rapidly more expensive.

The decision will affect whether the Bank of England decides to raise or lower interest rates as higher rates can slow inflation by dampening economic activity.

"Inflation ticked up in June, driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year," said Richard Heys, acting chief economist for the ONS, the UK's official statistics authority.

"Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year," he said, although it remains well below the peaks seen two years ago.