The Consumer Prices Index including owner occupiers' housing costs (CPIH) 12-month inflation rate was 0.8% in June, up from 0.7% in May.
The Consumer Prices Index (CPI) 12-month inflation rate dropped significantly in May to 0.5%, its lowest rate for four years. The rate declined from 0.8% in April mainly due to a fall in fuel prices. The rate was last lower, at 0.3%, in May 2016.
Rising prices for games and clothing were the largest upward forces in the CPIH 12-month inflation rate between May and June 2020.
The Office for National Statistics said that falling prices for food were a partially-offsetting downward contribution to the change.
ONS said that due to the ongoing coronavirus (COVID-19) pandemic, it identified 67 CPIH items unavailable to UK consumers in June. This means the CPIH figures may be slightly less accurate than pre-Coronavirus figures as they are based on a smaller ‘shopping basket.’ The number of unavailable items is down from 74 in May and 90 in April.
Myron Jobson, personal finance campaigner at Interactive Investor, said: “While June’s increase outstripped expectations, it does not necessarily mean that inflation will continue on the upward trend for the rest of the year.
“Inflation remains some way below the UK’s target of 2% - meaning the Bank of England could launch more stimulus measures. A further cut to interest rates is not beyond the realms of possibility, despite the Bank having already made two swathing base rate cuts in March – which would spell yet more bad news for savers who have faced years of paltry returns on their cash.”