Office for National Statistics

UK inflation rises 0.1% in July to beat forecasts

Core inflation rises to highest level in five months

UK GDP increased by 0.7% in the second quarter of 2015, according to the Office for National Statistics' initial reading, the tenth consecutive quarter of positive growth.

Inflation falling back to zero should lead to a further boost in consumer spending throughout the rest of the year, according to industry commentators.

UK CPI inflation fell back to zero last month, down from 0.1% in May, as the prices of clothing, fuel and food all fell.

Sterling jumped 0.6% against the US dollar this morning, on the news wages in the UK grew at their fastest rate since 2001 in the three months to the end of April.

The month of May marked the end of the UK's brief spell of negative inflation, as rising fuel costs have pushed the CPI figure above the zero mark once again.

Sterling has pulled back against the dollar after a second estimate of Q1 UK GDP growth failed to produce the upwards revision expected by economists.

The UK's headline inflation rate avoided negative territory in March but core inflation saw a surprise drop to its lowest level in nine years, latest figures show.

UK economic growth in the fourth quarter of last year was stronger than previously thought, according to the latest estimate from the Office for National Statistics (ONS).