Inflation rises in June

RIsING prices of computer games and clothing pushed up inflation in June.

The consumer prices index ticked up to 0.6pc, from May’s four-year low of 0.5pc, says the office for National statistics.

Inflation is still near historic lows. But economists warned the pick-up in prices will be short-lived as retailers launch discounts to tempt customers back. The VAT cut for the hospitality sector and the Governmentfunded eat out scheme, announced last week, are also likely to drag down inflation.

Paul Dales, at Capital economics, said: ‘The small rise probably won’t be sustained for long. By July or August, inflation may have fallen below zero.’