British inflation rate rose higher than economists have predicted in June, propelled by airfares on travels to Europe. According to the Office for National Statistics in London, U.K.’s inflation increased from 0.3% in May to 0.5%. Economists have predicted 0.4%, in accordance to the median estimate in a survey by Bloomberg. Core inflation also advanced to 1.4%.
Airfares leaped by 11% in June from May, partially because of the Euro 2016 football championship held in France. The ONS added that the increasing price of oil also helped push up the index. From May, consumer prices climbed by 0.2% in June while based on RPI, another gauge, prices increased month-on-month by 0.4% and 1.6% on a year-on-year basis.
The data were mostly obtained before the Brexit vote and the latest drop in the sterling has not been taken into consideration in the numbers.
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