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UK Inflation Rate Rises More than Expected 

Annual inflation rate in the United Kingdom edged up to 0.6 percent in June of 2020 from a 4-year low of 0.5 percent in May and beating market forecasts of 0.4 percent.

Main upward contributions came from cost of recreation and culture (2.6 percent), namely computer games and computer games consoles, with the coronavirus lockdown changing the timing of demand and availability of such products.

The UK allowed non-essential shops to reopen on June 15th. Other upward pressure also came from cost of clothing and footwear (-2.2 percent), possibly reflecting how retailers cut prices earlier than usual this year to shift goods during the lockdown; and health (2.1 percent).

The largest, partially offsetting, downward contribution came from cost of food (1 percent), namely vegetables. On a monthly basis, prices were up 0.1 percent after a flat reading in May. Annual core inflation which excludes cost of energy, food, alcoholic beverages increased to 1.4 percent from 1.2 percent.
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