UK stats office says inflation rose in June

LONDON – The Office of National Statistics says consumer price inflation rose to 0.5 per cent in the year to June from 0.3 per cent in the year to May as rises in airfares and oil prices pushed the figure to one of its highest levels this year.

Chris Williamson, chief economist at IHS Markit, says the June rate was based mainly on data collected prior to the June 23 referendum — ignoring the dip in the pound that followed the vote to leave the European Union.

Meanwhile, Moody’s Investors Service says Britain’s creditworthiness is under pressure because of uncertainty after the vote.

Kathrin Muehlbronner, a senior vice-president at Moody’s, says “the UK’s institutions will be tested,” by the number of complex economic and trade issues it will face in the coming years.