Interest rates push up inflation

Higher mortgage interest payments, resulting from May's increase in interest rates, pushed up inflation. In June, the Retail Prices Index (RPI) rose by 4.4% - up from 4.3% the previous month.

Meanwhile, inflation under the Consumer Prices Index (CPI), which excludes housing costs and is the government's preferred measure, fell to 2.4% in June - down from 2.5% in May. Cheaper energy prices aided the fall.