UK inflation rate rises 0.5% in June after sterling slide

Beat consensus expectations of 0.4%

The UK inflation rate rose 0.5% in June, a higher rate than the 0.3% reported in May, indicating inflation is back on an upward trend towards the 2% target, said economists.

According to the Office for National Statistics the Consumer Price Index (CPI) rose by 0.5% in the year to June 2016, a little above the position seen for most of 2016, although still relatively low historically. Rises in air fares, prices for motor fuels and a variety of recreational and cultural goods and services were the main positive contributors to the increase. AXA IM launches Short Duration Inflation fund These were partially offset by falls in the price of furniture and furnishings and accommodation services. The ONS said: "The [June] rate is the same as observed for Ma...