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