UK inflation accelerated in July, but core inflation held at 1.9%
Upward pressures on inflation were offset partly by some financial services and clothing and footwear prices, which fell 3.7% on the month on extended summer discounts
London — UK inflation accelerated for the first time in eight months in July, boosted by the cost of car fuel, transport tickets, computer games and food. Annual consumer-price growth quickened to 2.5% from 2.4% in June, as economists forecast, figures from the UK’s Office for National Statistics on Wednesday show. The Bank of England (BOE) had predicted inflation would pick up to 2.6% in July before resuming its downward path as the effect of sterling’s post-Brexit referendum decline fades. Officials raised interest rates this month to tame price pressures in the labour market and indicated further hikes will be needed to return inflation to target, providing Britain avoids a chaotic Brexit. Upward pressures on inflation were offset by some financial services and clothing and footwear prices, which fell 3.7% on the month as struggling retailers extended summer discounts. The drop in women’s clothing prices was particularly marked. Core inflation, which excludes food, energy, tobacc...
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