The UK’s annual inflation rate has fallen slightly over the past month but remains above the government’s target measure, the latest official data reveals.
Figures published by the Office for National Statistics shows that the consumer price index rose by 4.2 per cent on an annual basis in June, down from the 4.5 per cent recorded in the previous month.
However, this is still over the 2 per cent target measure. The last time inflation came in below the official target was November 2009, when it stood at 1.9 per cent.
The ONS says that food and non-alcoholic beverages placed the largest upward pressure on consumer prices in June, with bread and cereals, meat, and milk, cheese and eggs producing the most notable rises. Fuels and lubricants also drove the consumer price increases.
Downward pressure on the UK’s inflation came from falls in recreation and culture prices, especially from games, toys and hobbies, particularly computer games, and audio-visual equipment and related products.
Elsewhere, Germany’s year-on-year consumer price index stood at 2.3 per cent in June, remaining above its 2 per cent target for the fifth month running. Increasing energy prices were the main driver of the rise, growing by 9.9 per cent.
In France, annual inflation grew from 2 per cent in May to 2.1 per cent last month. The National Institute of Statistics and Economic Studies adds that energy prices are 11.5 per cent higher than in June 2010.