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.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.