Inflation rose throughout July for the first time since November last year summer holidays push up the price of transport costs.
According to the Office for National Statistics (ONS), the Consumer Price Index (CPI) rose 2.5 per cent last month, up from 2.4 per cent a month earlier.
This was largely attributed to a 5.7 per cent rise in transport costs compared to a month earlier, but this was partially offset by a drop in prices for women’s shoes and clothing.
Summer sales saw the price of clothing and footwear drop 0.4 per cent compared to last year, and as much as 3.7 per cent compared to last month. Food and non-alcoholic drinks saw a 2.3 per cent rise.
“Transport tickets and fuel, along with often erratic computer game prices, drove up costs for consumers,” head of inflation at the ONS said.
“On the other hand, there was a drop in prices for women’s clothing and footwear, and some financial services.”
Meanwhile the Retail Price Index (RPI), which includes the cost of home and mortgages, fell to 3.2 per cent, down 0.2 per cent from June and well below the 3.5 per cent analysts predicted.
This follows the Bank of England’s decision to raise interest rates to the highest level in nearly a decade.
[stockdio-historical-chart stockExchange=”LSE” width=”100%” symbol=”GBP” displayPrices=”Area” performance=”false” from=”2018-07-01″ to=”2018-08-15″ allowPeriodChange=”false” height=”350px”]