Retailers are facing tough conditions on the High Street with inflation. Rising food and fuel costs pushed UK inflation up-to an 11-year high of 3.8% in June from 3.3% in May.
The rise means inflation is now well above the government’s 2% target, and may reduce the chance of a UK rate cut.
The BOE has already said inflation may top 4% this year, must balance the need to control inflation with worries over growth.
The RPI inflation measure which is often used as a benchmark in pay negotiations rose to 4.6% in June from 4.3% in May.