Inflation rises in July

The headline rate of inflation rose to 2.6% in July, according to new figures released this morning.

The surprise rise in CPI inflation, from 2.4% in June, will raise fresh questions about forecasts that it is on track to return to the Bank of England's 2% target.

It could also limit the room of manoeuvre on the part of the Bank's Monetary Policy Committee as it considers further action to stimulate growth.

A 1% increase in transport costs was the biggest single factor behind the rise in the CPI rate according to the Office of National Stastics.

The broader RPI measure of inflation increased to 3.2% in July from 2.8%.

Coverage of the inflation figures is brought to readers of TheBusinessDesk.com in association with stockbrokers Redmayne-Bentley.

CPI inflation hit a peak of 5.2% in September last year but has been on a downward path since, ticking up slightly in March before resuming course.

Source : James Reed – Business Desk Yorkshire
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