Inflation remains below 2% target for seventh month

The jump comes from a CPI level of 1.5% in May.

Despite the rise CPI remains below the Bank of England’s 2% target for the seventh consecutive month.

The ONS says the largest contributions to the rate rise came from clothing, food, non-alcoholic drinks and air transport sectors.

Chris Williams, CEO of Wealth Horizon said:

“The latest inflation figures highlight what we have all known for a while: the cost of living is rising. This is disrupting young and old in equal measures: the younger generation is struggling with stagnating wages and exploding house prices, while the older generation is suffering with derisory interest rates on their savings.

“It surely can’t be long until the Bank of England is forced to act. Until then, it is vital people invest sensibly to ensure their money is not eroded by inflation. For many, this will mean investing in a range of asset classes in order to get the best returns, whether through the stock market or just keeping away from cash.”