UK consumer prices rise faster than expected in July

UK consumer price and retail price inflation were both higher than anticipated on an annual basis, the Office for National Statistics reported on Wednesday.

The consumer price index for July rose 3.8% on-year, from a 3.6% rise in June. It exceeded FXStreet-cited consensus expectations of a 3.7% increase.

On a monthly basis, CPI rose 0.1%, defying the consensus forecast of a 0.1% decrease but slowing from a 0.3% rise in June.

Core CPI, which excludes energy, food, alcohol and tobacco, increased 3.8% annually, from 3.7% in June and against consensus expectations of another 3.7% rise.

Also on Wednesday, the ONS reported that the retail price index posted a 4.8% annual rise in July, against a 4.4% increase in June. Market consensus had expected 4.5% inflation.

Finally, retail prices increased 0.4% on-month, unchanged from their increase in June and against the forecast of deceleration to a 0.1% increase.

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