UK inflation breaks above 10% in July, outpacing market and Bank of England expectations.
Inflation continued to outpace expectations in July, with the consumer price index (CPI) rising 10.1% year-on-year to a fresh 40-year high, up from 9.4% in June, the Office for National Statistics reported Wednesday. The rate exceeded analysts consensus forecasts of an increase of 9.8% y/y and was above the Bank of England's outlook for July.
According to Grant Fitzner, the ONS's chief economist, a wide range of price rises drove inflation up again this month. "Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices," he said.
The retail price index (RPI), the measure used for rises in many benefits and services, rose 12.3% year-on-year, the highest annual increase since March 1981.