United Kingdom: Inflation accelerates in July from the prior month
Latest reading: Consumer prices rose 2.9% in annual terms in July, following a 2.6% increase in the previous month and driven by a hike to the energy price cap. The reading was in line with market expectations but still well above the Bank of England’s 2.0% target.
Relative to the previous month’s data, there were higher price pressures for In contrast, there were reduced price pressures for recreation and culture (+1.5% vs +1.6% in June), transportation (+3.5% vs +5.7% in June) and food and non-alcoholic beverages (+1.3% vs +1.7% in June).
Meanwhile, core consumer prices increased 2.6% in annual terms in July, stable from the previous month’s reading.
Lastly, consumer prices were up 0.28% in July on a month-on-month basis, following a 0.13% rise in the prior month.