Rising fuel prices helped to push the UK’s inflation rate higher last month, official figures released today show.
Inflation, as measured by Consumer Prices Index (CPI), rose to 0.6% in July from 0.5% the month before, the Office for National Statistics said. This is the biggest jump in two years.
More expensive alcoholic drinks and hotel rooms also helped to increase the CPI rate, the ONS said. However, food deflation continued apace, albeit at a slower rate compared to July 2015.
The Retail Prices Index (RPI) – the official measure of inflation – rose to 1.9% in July from 1.6% in June. This means that prices fixed to the RPI, such as some rail fares, may rise in the coming months.
Separate figures from the ONS suggested that the fall in the value of the pound since the UK’s referendum vote to leave the EU had increased the cost of imports for manufacturers.
Input prices faced by manufacturers rose 4.3% in the year to July, compared with a fall of 0.5% in the year to June.
In addition, the price of goods leaving the factory gate were 0.3% higher than a year earlier, the first annual increase since June 2014.
“There was no obvious impact on today’s consumer prices figures following the EU referendum results though the Producer Prices Index suggests the fall in the exchange rate is beginning to push up import prices faced by manufacturers,” said Mike Prestwood, head of prices at the ONS.
“These are the first sets of consumer and producer prices data collected since the referendum polling day.”