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UK's inflation speeded up first time in eight months
In July UK’s inflation speeded up first time in eight months under influence of growth in price of auto fuel, transport tickets, computer games and food, Bloomberg reports.
In July UK’s inflation speeded up first time in eight months under influence of growth in price of auto fuel, transport tickets, computer games and food, Bloomberg reports. According to data from Office of National Statistics, annual growth of consumer prices was 2,5% from 2,4% in June.
Bank of England forecasted that inflation in July will be 2,6%, and then it will fall as influence of sterling decline after Brexit referendum fades. Bank raised interest rates this month to restrict pressure on labor market, and it is aiming for more hikes to get inflation to target level.
Price growth on mentioned categories offset decline in price of some financial services, clothing and footwear. Core inflation, excluding food, energy, tobacco and alcohol, stayed at 1,9%.
After data was released, pound was stable at $1,2723.
Cost of input materials for producers rose by 0,5%. As a result, the annual increase is 10,9%, where oil accounts for most part of it. Producers, however, did not transfer these cost gains to consumers, and their prices grew by 3,1%.
House prices grew by 3% in June. This is the slowest growth since August 2013. London’s values declined by 0,7%.