The trend continues a recent spike in inflation both in the UK and the US.

In the US, 12 month inflation has risen to 5.4% in the latest figures out this week against expectations of 4.9%.

UK CPI rose by 0.5% to 2.5% in June, compared with a rise of only 0.1% in June 2020.

In the UK, the wider Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 2.4% in the 12 months to June, up from 2.1% in the 12 months to May.

The Office for National Statistics said the biggest upward contribution to the CPIH 12-month inflation rate came from rising transport costs such as fuel. On a monthly basis, CPIH rose by 0.4% in June 2021, compared with a rise of 0.1% in June 2020.

Prices for food, second-hand cars, clothing and footwear, eating and drinking out also rose in 2021 but these mostly fell in 2020, resulting in the largest upward contributions to the change in the CPIH 12-month inflation rate between May and June 2021.

There were large downward pressures in inflation from falling prices for games, toys and hobbies, where prices fell this year but rose a year ago.

The number of CPIH items identified as unavailable in June fell to 14, mostly relating to international travel, and accounting for 1.3% of the 'inflation basket' by weight.

Commentators warned that the upward trend in inflation recently may not be over.

Neil Messenger, director of client and markets at Standard Life’s Financial Planning arm 1825, said: “After unexpectedly exceeding the government’s 2% target in May, there now appears to be no stopping inflation – rising to 2.5% in June.

“And with each step out of lockdown comes another boost to consumer confidence and demand – so the fast approaching ‘freedom day’ is likely to push that figure even higher.” 

Laith Khalaf, financial analyst at AJ Bell, said: “Inflation has risen ahead of economist’s expectations and is now firmly above the Bank of England’s target. However we’re still stuck in inflationary limbo, where we can’t tell if rising prices are a statistical blip, or a more concerning and permanent feature of the global economic recovery. 

“Things aren’t running quite as hot on this side of the Atlantic, with UK inflation still only around half the rate in the US. Nonetheless the direction and speed of travel is worrying, when you consider that only a few months ago, UK inflation sat at a lowly 0.4%.”

Sarah Coles, personal finance analyst, Hargreaves Lansdown, said: “Inflation has raced ahead of forecasts again, as we fill our homes and driveways with the things we need to adapt to major lifestyle changes. Higher inflation is the last thing that savers need.”