Inflation rises in UK

<p>UK inflation is up to 2.9 per cent.</p>

Inflation in the UK is up to 2.9 per cent, the latest data from the Office for National Statistics (ONS) has revealed.

Figures for June from the body showed UK inflation rose from 2.7 per cent in May to its highest level in more than a year.

However, as markets had predicted the figure would be around the three per cent mark, inflation is actually lower than many had predicted.

Richard Campbell from the ONS stated that despite the rise in inflation the picture as a whole remains "calm", reports BBC News.

Rob Wood, economist at Berenberg Bank, suggested it is likely inflation will continue to "bobble around" the three per cent mark for the time being.

He pointed out that "weak wage growth feeds through to lower costs and inflation" and this means the target figure of two per cent will not be reached for some time.

After the Bank of England held interest rates again this month, chief economist at Santander Barry Naisbitt claimed inflation could rise further in the coming weeks.

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