ONS: UK inflation 'still fairly calm'

The rate of consumer price index (CPI) inflation increased to 2.9% in June, up from 2.7% in May, according to the Office for National Statistics (ONS).

The figure, a 14-month high, was lower than the 3% expected by markets.

Retail prices index (RPI) inflation also rose, to 3.3% from 3.1% in May.

Richard Campbell from the ONS said that although inflation had risen the overall picture was "still fairly calm".