UK inflation beats expectations with 0.1% July rise

Core inflation rises to highest level in five months

The UK's Consumer Prices Index (CPI) grew by 0.1% in the year to July, surpassing expectations it would remain at zero, as a shift in the timing of summer sales boosted prices for the period.

The Office for National Statistics said the largest upward contribution "by far" to the change in the 12-month rate was clothing and footwear, which fell by 3.4% between June and July, a much lower fall than the 5.7% seen between the same two months last year. Many economists expected strong sterling and the slump in the oil price to hold inflation at zero, a figure it fell to in June after first touching zero in February and briefly entering deflationary territory in May. Core inflation, the measure of price growth, also rose to a higher level than analyst predicted. It increased to ...