Inflation nears BoE target, reaching 1.9% in June

The rate of inflation is nearing the Bank of England’s 2% target, reaching 1.9% in June.

The increase was steeper than expected, and is at the highest level since January.

May’s rate of 1.5% was the lowest in four and a half years, but clothing and footwear price rises saw inflation take a sharp upturn, helped by level food prices and an increase in furniture prices and air fares.

However, inflation now far outstrips wage growth which was last recorded at 0.7%, meaning real wages are falling.

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