The latest reading of inflation data in the UK is likely to shake the view of the Bank of England (BOE) earlier which said that the rise in inflation is only temporary in nature.
Most recently, the UK inflation rate jumped well above the BOE target by rising 2.5% in June, the highest reading ever recorded since August 2018 and rising higher than the figure recorded in May.
According to the National Statistics Office (ONS), the surge was driven by higher prices of food, fuel, used cars, clothing and footwear.
Moreover, Core Inflation, which excludes food, energy, alcohol and tobacco prices was 2.3% in the 12 months to June compared with 2.0% in May.
Following this higher -than -expected record, the pound surged 0.2% against the US dollar, trading steady around 1.38500 at the start of the European session.
Earlier, the BOE said that inflation would rise above 3% as the UK bounced back from a coronavirus closure, but also argued that the rise was only temporary and did not require it to ease the stimulus in monetary policy.
Governor Andrew Bailey this month rejected calls for immediate action by saying officials should not overreact to temporary factors affecting prices.
