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Big spike: UK inflation hits 18-month high; pressure mounts on Starmer government as US tariff threat looms

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British inflation increased unexpectedly in June. It reached an 18-month high. The Consumer Prices Index rose to 3.6 percent. Motor fuel and food prices mainly fuelled the jump. The UK economy contracted for a second month in May. Rachel Reeves acknowledged the pressure on households. The Bank of England may still cut interest rates next month.
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