THE inflation rate in the UK has increased for the first time this year, as predicted, by 2.2%.
This indicates that the average cost of goods and services has gone up by 2.2% from July to July, surpassing the Bank of England’s 2% goal.
This rise was anticipated because the costs of gas and electricity decreased less than they did last year. However, it’s expected that the inflation rate will increase again before decreasing once more.
Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “Inflation ticked up a little in July as although domestic energy costs fell, they fell by less than a year ago.
“This was partially offset by hotel costs, which fell in July after strong growth in June.”
Bankers at the Bank of England and economists polled by Reuters had anticipated a 2.3% rise, which could encourage interest rate setters to lower rates sooner rather than later.
Core inflation, which measures price rises excluding volatile food and energy costs, dropped from 3.5% to 3.3%.
