Another month, another rise in inflation.
The consumer price index jumped to 9.4pc in June – up from 9.1pc the previous month and another 40-year high.
Once again, energy and food were the main driving forces behind the increase, which also covered spending during the Jubilee bank holiday weekend.
The figures are likely to increase the pressure on the Bank of England to deliver a sharp rise in interest rates at next month’s MPC meeting.
The Bank has forecast that inflation will peak at more than 11pc in October when the energy price cap rises again. However, it must also balance efforts to curb prices with the risk of tipping Britain into a recession.
5 things to start your day
1) Train operators seek to scrap peak and off-peak rail fares Passengers could instead face airline-style surge pricing model
2) Why British workers’ pay squeeze will last even longer than previously feared As businesses run low on cash to hand to staff, short-term measures to support earnings are fading
3) One million viewers abandon Netflix Success of Stranger Things prevents even worse exodus
4) Weather ‘too hot’ for solar panels Power output during heatwave drops below levels typically reached in spring
5) Britain runs dry as wasteful water industry springs a leak Another hosepipe ban looms over UK, with water firms in spotlight over wastage and leaks
What happened overnight
Shares in Netflix were up nearly 8pc in after-hours trading last night following the streaming giant’s “better-than-expected” loss of 1m subscribers.
Asian shares extended a global rally this morning as strong US corporate earnings and the expected resumption of Russian gas supply to Europe helped lift sentiment and ease fears of a recession, while the dollar was mired near two-week lows.
MSCI’s broadest index of Asia-Pacific shares outside Japan surged 1.1pc in early Asia trade, driven by a 1.5pc jump in resources-heavy Australia, a 1.1pc gain in South Korean shares and 1.5pc jump in Hong Kong stocks. Japan’s Nikkei surged 2.1pc.
Coming up today
- Economics: Consumer price index (UK), producer price index (UK), retail price index (UK), interest rate decision (China), consumer confidence (EU)
- Corporate: Centamin (interims); Antofagasta, Liontrust Asset Management, Premier Foods, Royal Mail (trading update)