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UK inflation held steady at 2% in June

UK inflation was subdued in June as rising food and alcohol prices were offset by cheaper petrol and diesel.

The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) was 2%, the same as the previous month.

The rate was in line with economists' expectations and the Bank of England's 2% target.

In June the price of food increased 1.5% compared with 0.8% growth in May, driven by the rising cost of fruit and vegetables.

Fruit prices jumped up by 2.2% against the same month last year, after the price of blueberries and raspberries surged.

Wine and beer also had a positive contribution, with the price of beer continuing to accelerate in June, reporting 2.1% growth, up from 1.1% growth in May.

These price rises were partly offset by lower motor fuels, as petrol prices fell by 0.1p per litre.

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Mike Hardie, head of inflation at the ONS, said: "The overall rate of inflation remains steady, with no change in pace this month. Petrol and diesel prices fell this year but rose a year ago, while clothes prices dropped by less than this time last year."