The UK has seen inflation rise to 1.9% in the year to June 2014. This is up from the 1.5% rate last month in May.

This means the rate has risen back to the level it was in January. This will cause problems for the government who are attempting to combat a cost of living crisis. One of the main contributing factors to this was the difficulty in making real wages rise.

With the inflation rate jumping back up, the problem becomes much harder to solve. Back in June wages only rose by 0.7%, or 0.9% with bonuses, which is far off counteracting a 1.9% rise in inflation.

There were four main culprits for the rise. Clothing and footwear prices increased by 0.6% between May and June, whereas they fell by 1.9% in the same period last year. Summer sales usually bring a drop in prices, but this effect has failed to materialise this year.

Food and drink also contributed despite falling in the same period last year. Transport saw an increase of 0.6% compared to a 0.1% rise last year.

Finally, a 0.2% increase was seen in furniture, household, equipment and maintenance, whereas there was a 0.5% fall last year.

Worryingly, there were no significant downward contributions, although there was a small drop in miscellaneous goods & services.

Photo by Simon and His Camera