UK inflation jumps to 2.5% as secondhand car and food prices rise
by Larry Elliott Economics editor from on (#5M5VP)
June figure is highest level since August 2018 and above analysts' forecasts
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Britain's inflation rate has risen to 2.5% - the highest in almost three years - as a combination of supply shortages and rising demand prompted by the easing of coronavirus lockdown restrictions led to higher prices last month.
The Office for National Statistics (ONS) said dearer food, secondhand cars, clothing, footwear and fuel were the main factors behind a jump in the annual inflation rate from 2.1% to 2.5% in June.
The global shortage in semiconductors, the microchips that are an essential component in every electronic device in the world, started as a temporary delay in supplies as chip factories shut down when the coronavirus pandemic first hit.
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