UK inflation hits three-year high as economy opens up

UK inflation hit 2.5% in June – the highest since August 2018. Saloni Sardana looks at what's behind the rise and what it means for interest rates.

Woman at a market stall
Higher food prices are driving inflation up
(Image credit: © Hollie Adams/Bloomberg via Getty Images)

UK inflation jumped to its highest level in three years with CPI inflation hitting 2.5% thanks to an increase in the price of foods, dining out, and clothing and footwear.

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni