Oil price rise pulls inflation to 2.3%

INFLATION rose sharply by 2.3% in June, up 0.6% from the more modest 1.7% annual rate in May, yesterday's Consumer Price Index showed.

Worse may follow and the annual inflation rate could hit 3% by the year end, economists fear.

Increases in petrol, diesel, home-heating oil, average mortgage interest repayments, alcohol and hotel accommodation were the main changes last month.