UK Inflation Inches up in July

British consumer prices rose in July and core inflation hit a five-month high, triggering market bets on the Bank of England moving slightly faster than previously expected once it starts raising interest rates.

The timing of the first hike remains unclear, however, comments from economists suggested.

Tuesday’s data showed annual consumer price inflation unexpectedly ticked up 0.1 percent in July from zero and the underlying measure – which strips out energy, food, alcohol and tobacco – rose to its highest level since February.

The Office for National Statistics said the rise was helped by smaller discounts to clothing and footwear prices compared to this time last year, a factor economists said would be temporary.

Reuters

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