UK annual inflation, measured by the Consumer Price Index, hit 2.5% in June which is the highest inflation number since August 2018. This sees a 0.4% rise compared to May and takes inflation comfortably above the Bank of England’s 2% target. Many of the biggest contributors were those rebounding from price falls 12 months previous, such as transport & petrol, food, clothing and eating & drinking. The data is again above analyst expectation and feeds into the emerging global narrative that inflation may be stickier than central bankers suggest. The pound rallied on the news as investors prophesied the BoE may raise rates, pulling the internationally focused FTSE 100 0.5% lower.