Inflation close to 'topping out' as CPI holds steady at 2.6% in July

Unchanged from previous month

Inflation held steady at 2.6% in July, unchanged from the previous month, despite forecasts of a rise to 2.7%, according to the latest monthly figures from the Office for National Statistics (ONS).

While inflation it remained steady, it still sits above the Bank of England's 2% target. Motor fuel prices provided the biggest downward contributor, falling 1.3% between June and July, its fifth month of declines. Over the same period last year, they rose by 0.7%. This was offset by upward contributions from clothing, household goods, gas and electricity, as well as food and non-alcoholic beverages. Sterling falls on surprise inflation drop to 2.6% in June Thomas Wells, manager of Smith & Williamson's Global Inflation Linked Bond fund, said: "CPI remains well above the Bank of ...