UK inflation highest since November 2014
Data from the Office for National Statistics (ONS) showed the consumer price index (CPI) rose to 0.6% compared to the same month last year, up from the 0.5% in June that economists expected to be maintained.
Month-on-month data found CPI fell 0.1%, as expected, after a 0.2% increase in June.
The pound's reaction was to bounce on the news.
Having fallen back to multi-year lows in anticipation of bad news from the many ONS announcements this week, the pound's reaction was to bounce on the news, rising 0.8% against the dollar to 1.2983 and returning to 1.1519 on the euro after sinking to three-year lows earlier in the session.
Rising prices for motor fuels, alcoholic beverages and accommodation services were the main contributors to the rise in CPI, helped by a smaller fall in food prices than a year ago.
These upward pressures were only partially offset by falls in social housing rent, and falling prices for certain games and toys. ■