The Consumer Price Index (CPI), a measure of UK inflation, rose to 3.8% year-on-year in July, according to data released by the Office for National Statistics (ONS) this morning, Wednesday, August 20, after rising 3.6% in June, exceeding market expectations of 3.7%.
On a monthly basis, the CPI rose 0.1% in July, compared to a decline of approximately 0.2% in June.
The core CPI, which excludes food, energy, alcohol, and tobacco prices, rose to 3.8% in July from 3.7%, matching expectations.
In detail, the annual rate of transport prices rose from 3.2% to 1.7%, and inflation in food and non-alcoholic beverages rose to 4.9% from 4.5%, marking the fourth consecutive monthly increase, while the services sector index remained stable.