Price rises speed up again as economy unlockson July 14, 2021 at 10:47 am

The inflation rate hit 2.5% in June, exceeding the Bank of England’s target for a second month.

Inflation is up again, above target, with prices rising faster than expected across the board in June. Much of this is the result of comparisons with prices that were falling a year ago at the height of the lockdown. Bottlenecks in supply are also driving prices up. For example, car producers can not find microchips, so cannot build enough new cars, so used car prices went up 4.4% in a month. During the pandemic, the microchip market diverted its supply to electronics amid a slump in car sales.