Surprise Surge In UK Inflation During July

The underlying rate of UK inflation rose to 2.9% in July, up by 0.1% on the previous month, according to the latest figures from the Office Of National Statistics (ONS).

The headline rate of inflation, which includes mortgage interest payments, rose by 0.2% to 3.1% during July and remained well above the Government’s target of 2.5%.

According to the ONS, the largest upward influence came from increased prices for clothing and footwear. Another large upward effect came from fares and other travel costs. Meanwhile, the main downward influence came from alcoholic drinks, as prices fell, in contrast with significant increases in last year.

The all items Retail Prices Index for July 2003 was 181.3.

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