GROWTH in the prices of computer games and foreign holidays helped push inflation to an 18-month high, figures showed yesterday.

The Consumer Prices Index (CPI) rose to 1.6 per cent last month from 1.5 per cent during May, according to data from the Office for National Statistics (ONS).

The last time inflation on the CPI basis was higher was in December 2002, when the annual rate was 1.7 per cent.

It is still below the Government's two per cent target, although recent increases have increased the likelihood of another interest rate rise.

Retailers were able to increase the cost of computer games last month and be confident of maintaining sales, while the price of toys fell by less than last year.

Electronic goods, including televisions, were also given higher prices last month, but their contribution to inflation was partially offset by the lower cost of theatre admissions.

Travel costs boosted the CPI, with holidaymakers making advance bookings for overseas trips.

Prices of holidays to a range of destinations rose last month.

Economists had anticipated the rise in inflation, but believed the major driver would come from higher petrol pump prices.

Yesterday's figures showed that the cost of petrol fell last month, but by less than it did a year ago.

Second-hand cars provided the greatest downward pressure on inflation, with prices falling on a year earlier.

Reduced charges for foreign exchange and price changes for meat and fruit, especially strawberries, also restrained the rise in inflation, the ONS said.