Surging food prices force up inflation in new blow to Reeves

Chancellor says there is 'more to do' to help working people, while Conservatives declare unexpected hike in prices is 'deeply worrying for families' and jobs figures new are expected to show a further slowdown in wage growth

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UK inflation rose to a near 18-month high in June as food prices surged for the third month running, according to official figures.

The Office for National Statistics (ONS) said Consumer Prices Index inflation rose to 3.6 per cent in June, up from 3.4 per cent in May and the highest since January 2024.

The increase was unexpected, with most economists forecasting inflation to remain unchanged at 3.4 per cent.

The ONS said annual food price inflation hit the highest level since February 2024, while transport costs also pushed up the cost of living as air fares saw the largest monthly rise in price for seven years.

ONS acting chief economist Richard Heys said: "Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year.

"However, it remains well below the peak seen in early 2023."

Chancellor Rachel Reeves said there was "more to do" to help to bring down inflation.

She said: "I know working people are still struggling with the cost of living."