Inflation hits 2.9% in June as price pressures continue

UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear.

The rise, while below economists' expectations of a rise to 3%, continues a gradual creep higher in the inflation rate seen in recent months. But the number means new Bank of England Governor Mark Carney [pictured] will be spared having to write to the Chancellor explaining why inflation is one percentage point above its target 2% level. Core CPI inflation, meanwhile, rose slightly from 2.2% to 2.3% on the month. But economists expect price pressures will start to subside from here. "Looking ahead, it seems likely that June's inflation figure will represent this year's peak. Indeed...