Most still expect a rate cut in August, but these fluctuating prices mean longer-term uncertainty

High inflation is unlikely to do much for consumers' mood, underlining the sense that the cost of living crisis never went away

- Heather Stewart

or anyone hoping the Bank of England will pick up the pace of interest rate cuts - including Rachel Reeves - there was little comfort in the latest inflation data.

The consumer prices index (CPI) increased at a higher than expected rate of 3.6% in June, the Office for National Statistics revealed yesterday. The figure remains in line with the Bank's expectation of an inflation "hump" over the summer, but the upward pressure is not confined to the regulated prices, such as transport fares and utility bills, that policymakers knew would rise.