UK Inflation Shows Unexpected Rise

UK inflation has risen higher than expected, according to the latest figures from the Office Of National Statistics (ONS), which show that the underlying rate of inflation increased by 0.5% last month to 2%.

According to the ONS, the rise, which casts doubt over the need for another interest rate cut, could be due to price changes for food, furniture, housing costs and car tax and insurance. The headline rate of inflation for July was 1.5%.

The Retail Prices Index was 174.8.

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