UK inflation rises above wage growth
The consumer price index in July was up 2.5% on the same month a year ago, the Office for National Statistics revealed, with the rate picking up from 2.4% in the previous three months, as economists expected but undershooting the Bank of England's 2.6% forecast. CPI was flat on a month-on-month basis.
A day earlier, the ONS had revealed that average UK pay in the three months to June was up 2.4%, with the month on June alone seeing average wage growth of 2.1% year-over-year. Excluding bonuses, average weekly earnings stood at 2.7% for the second quarter.
Core CPI, which excludes prices for fuel and food, remained at 1.9%, in line with forecasts. CPIH, the ONS's preferred measure as it included a measure of owner occupiers' housing costs, also remained unmoved, at 2.3%.
Factory gate inflation edged down from 3.3% to 3.1%, but input price inflation spiked up further from 10.2% to 10.9%.
The retail prices index for July, which is used by the Department for Transport to determine the annual increase for train prices from next January, dropped to 3.2%, below the 3.4% that was forecast and the 3.6% rail fare increase seen last year. ■